Krishna Hare Educational Trust Vs ITO (ITAT Delhi)
The Delhi Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal against the order dated 26.06.2025 of the Commissioner of Income Tax (Appeals), arising from the assessment order dated 27.12.2017 passed under Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2015-16.
The assessee, a charitable trust registered under Section 12A, filed its return of income on 31.08.2015 declaring nil income with a reported loss of Rs. 3,38,63,296/-. It disclosed gross receipts of Rs. 7,40,83,647/-, claimed exemption under Section 11(1)(a) to the extent of 15% of gross receipts amounting to Rs. 1,11,12,547/-, and claimed revenue expenditure of Rs. 7,58,73,184/- and capital expenditure of Rs. 2,09,61,212/- as application of income for charitable purposes.
The Assessing Officer completed the assessment at an income of Rs. 38,55,004/-. The Assessing Officer disallowed the 15% exemption of Rs. 1,11,12,547/- under Section 11, disallowed revenue expenditure of Rs. 47,05,925/- paid to M/s Educomp Infrastructure and School Management Ltd. (EISML) on the ground that it was a specified concern under Section 13(3)(e), and disallowed capital expenditure of Rs. 2,09,61,212/- paid to M/s Edusmart Services Pvt. Ltd. on the ground that it was a specified concern under Section 13(3)(e). The Commissioner (Appeals) upheld these disallowances.
