These two appeals were filed by the Revenue for the Assessment Years 2015-16 and 2018-19 against separate appellate orders passed by the Commissioner of Income Tax (Appeals), NFAC. Since the issues involved were identical, both appeals were disposed of by a consolidated order.

The core issue raised by the Revenue was that the learned CIT(A) had erred in allowing exemption under section 10(23C)(iiiab) of the Income-tax Act, 1961, to the assessee, Kamla Nehru P.G. College, on the ground that the assessee had allegedly failed to comply with the requirement of filing a return under section 139(4C) of the Act.

For Assessment Year 2015-16, the Assessing Officer had made additions under section 69A by treating cash deposits and interest income as unexplained. In appellate proceedings, the assessee submitted that it was a government-aided degree college, running in accordance with government rules, and that its accounts were audited by government authorities. It was further contended that the income earned was solely for educational purposes and was exempt under section 10(23C)(iiiab).

The learned CIT(A), after examining the submissions and supporting documents, held that the assessee was an educational institution substantially financed by the Government and existed solely for educational purposes and not for profit. The CIT(A) further held that the nature of cash deposits represented fee receipts and that the assessee was entitled to exemption under section 10(23C)(iiiab). Accordingly, the additions made by the Assessing Officer were deleted.

Aggrieved, the Revenue preferred an appeal before the Tribunal. After hearing both sides and perusing the material on record, the Tribunal observed that the order passed by the learned CIT(A) was just and fair and in accordance with law. The Tribunal found no infirmity in the findings of the CIT(A) and declined to interfere with the impugned order for Assessment Year 2015-16. Consequently, the Revenue’s appeal for that year was dismissed.

For Assessment Year 2018-19, the Tribunal noted that the facts and circumstances were identical to those in Assessment Year 2015-16. Since no distinguishing material was brought on record by either party, the findings recorded for Assessment Year 2015-16 were held to apply mutatis mutandis to Assessment Year 2018-19 as well. Accordingly, the Revenue’s appeal for Assessment Year 2018-19 was also dismissed.

In the result, both appeals filed by the Revenue were dismissed for statistical purposes.

Source Link:
https://itat.gov.in/public/files/upload/1765777859-dm86KZ-1-TO.pdf


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