The case involves NIIT Foundation, New Delhi, which appealed against the order of the Commissioner of Income Tax (Exemptions) under section 263 of the Income Tax Act, 1961. The primary contention was the CIT(E)’s revision of the assessment year 2014-15, originally pronounced on 27th May 2020.
The appellant, NIIT Foundation, contested the CIT(E)’s decision to revise the assessment under section 263. The foundation argued that the original assessment, which accepted their returned income at Rs. Nil following thorough scrutiny under section 143(3), was correct. Their primary grievance was that the revision was done without adequate examination of factual backgrounds and legal stances, infringing principles of natural justice.
The tribunal analyzed the activities of NIIT Foundation, particularly focusing on whether they constituted ‘education’ as defined under the Income Tax Act. The tribunal found that the educational activities conducted by the Foundation, which included various training and literacy programs across India, qualified as charitable activities under section 2(15). The judgment emphasized that the mere receipt of fees and the nature of deductions by corporate donors did not alter the charitable nature of the activities.
The tribunal set aside the revisionary order of the CIT(E), upholding the original assessment. This case reaffirms the criteria for what constitutes ‘educational activities’ under the Income Tax Act and emphasizes the need for proper examination by CIT(E) before revising an assessment under section 263.
ITA No. 4868/DEL/2019 – NIIT Foundation vs CIT(E): A Detailed Analysis of the Final Tribunal Order
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