In the matters of ITA No. 19/DEL/2019 and ITA No. 20/DEL/2019, The Delhi Public School Society, located in New Delhi, engaged in a legal battle against the J.C.I.T., Exemption, Range-2, New Delhi concerning claims for the assessment years 2014-15 and 2015-16. These appeals were heard together by the Income Tax Appellate Tribunal, Delhi ‘G’ Bench.
The proceedings were presided over by Accountant Member Shri N.K. Billaiya and Judicial Member Ms. Astha Chandra. The primary issue at stake was the society’s claim for additional relief under Section 11(2) of the Income-tax Act, 1961. This provision pertains to the accumulation of income by trusts or non-profit organizations that wish to carry it forward for specific purposes.
Another significant point of contention was related to the valuation of fixed assets sold during the year 2014-15, which affected the gross sale consideration in the society’s financial records. The society’s legal representative highlighted that the Chief Commissioner of Income Tax [Exemptions], Delhi, had approved the society under section 10(23C)(vi) of the Act from the assessment year 2008-09 onwards, which could potentially influence the final decision on the claims.
Ultimately, the Tribunal directed the Assessing Officer to re-examine the issues in light of the approval granted to the society. Both appeals were allowed for statistical purposes, signaling a reconsideration of the society’s claims that could lead to a favorable adjustment of their financial obligations.
This case not only highlights the complexities of tax laws affecting educational institutions but also underscores the importance of proper administrative procedures and the impact of prior approvals on current assessments.
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