Introduction
This document provides a comprehensive overview of the tax appeal case between Kamla Nehru Public School Society and the Deputy Commissioner of Income Tax, CPC Bangalore concerning the assessment year 2016-17. The case highlights the procedural developments and the final judgment pronounced by the Income Tax Appellate Tribunal, Delhi.
Background
The appeal by Kamla Nehru Public School Society, located in Faridabad, Haryana, was directed against the order of the learned Commissioner of Income Tax (Appeals) dated 17th December 2018, which in turn arose from the order passed under Section 143(1) of the Income-tax Act, 1961 on 19th June 2017.
Legal Proceedings
The primary issue in the appeal was the denial of exemption to the assessee under Section 10(23C)(iiiad) of the Income-tax Act by the Assessing Officer in the intimation passed under Section 143(1). The school argued that it operated solely for educational purposes and not for profit, with annual receipts within the exemption limits. However, a procedural error occurred as the return of income was filed using Form No.5 instead of Form No.7, leading to a miscommunication regarding the exemption claim.
Decision of the Tribunal
The Tribunal recognized the procedural mistake concerning the form used for filing the return. It acknowledged that the school fulfilled all conditions for exemption under Section 10(23C)(iiiad) and directed the exemption to be granted, thus allowing the appeal of the assessee.
Conclusion
The Tribunal’s decision underscores the importance of correct procedural compliance while also emphasizing that substantive justice should prevail over technical errors. This case serves as a significant precedent for educational institutions regarding compliance with tax filings and exemptions.