The appeal by Lahoria Education Society pertains to an addition made by the Income Tax Officer (ITO) for the assessment year 2014-15, which was contested at the ITAT Delhi under ITA No. 5228/Del/2019.
The society operates New Lahoria Vidha Mandir Senior Secondary School in Hisar and is registered under Section 12AA of the Income Tax Act. The appeal focuses on a discrepancy in the annual charges reported for classes 9th and 10th during the AY 2014-15.
The core issue arose from a survey conducted by the ITO, where a difference was noted between the fees recorded and the amounts claimed in the fee chart. This led to an additional tax assessment based on alleged unreported fees totaling Rs.1,46,000.
The Society contended that all fees were duly recorded and substantiated with audited accounts and other relevant documentation. Despite these submissions, the CIT(A) upheld the addition, prompting an appeal to the ITAT. The ITAT examined the evidence anew, including the Society’s financial records and the statement from the survey, which had initially triggered the discrepancy allegation.
The ITAT found that the addition was primarily based on the survey statement without substantial corroborative evidence from the ITO. The Tribunal held that such statements alone could not justify the addition unless supported by concrete evidence. Consequently, the ITAT decided to delete the addition, providing relief to Lahoria Education Society.
This case underscores the importance of accurate record-keeping and the challenges educational institutions face in tax assessments. It also highlights the critical role of judicial bodies in adjudicating disputes with fairness based on the merit of the evidence presented.
Lahoria Education Society vs. ITO: Dispute Over Discrepancy in Annual Charges for AY 2014-15
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