The Commissioner v. M/S Ananda Social and Education Trust

((((((((((((HC-KAR, NC:(2026:KHC:40001-DB( ITA(No.(167(of(2022( C/W(ITA(No.(107(of(2022( ,,,,,,,,,, , CNR:(KAHC010120222021( ( ( IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( THDATED(THIS(THE(30 (DAY(OF(JULY,(2026(

PRESENT( THE(HON'BLE(MR.(JUSTICE(S.G.PANDIT( AND(( THE(HON'BLE(DR.(JUSTICE(K.MANMADHA(RAO(

INCOME(TAX(APPEAL(NO.(167(OF(2022( C/W( INCOME(TAX(APPEAL(NO.(107(OF(2022((

( BETWEEN:((

1., THE,COMMISSIONER,, OF,INCOME,TAX,,CIT(A),EXEMPTION, TH6 ,FLOOR,,UNITY,BUILDING,ANNEXE, MISSION,ROAD,,BENGALURU,-,560,027., ,

2., THE,ASST.,COMMISSIONER,OF,INCOME,TAX, CENTRAL,CIRCLE,(3),,PRESENT,ADDRESS,

DCIT,,CIRCLE-1,EXEMPTION, TH6 ,FLOOR,,UNITY,BUILDING,ANNEXE,

MISSION,ROAD,,BENGALURU,-,560,027., …APPELLANTS, (COMMON,IN,BOTH,APPEALS),Digitallytisignedtiby , NANJUNDACHARI (BY,SRI.,RAVI,RAJ,Y.V.,,AND,SRI,M,DILIP,,ADVS.), Location:0Hig h (Courttiof Karnataka AND:( M/S.,ANANDA,SOCIAL,AND,EDUCATION,TRUST, NO.24,,KADUGONDANAHALLI, BENGALURU,-,560,045, PAN,AAATA,7392M( …RESPONDENT, (COMMON,IN,BOTH,APPEALS), , (BY,SRI.,T,SURYANARAYANA,,SR.,ADV.,FOR,, ,SMT.,TANMAYEE,RAJKUMAR,,ADV.), , , THESES, APPEALS, ARE, FILED, UNDER, SEC.260-A, OF, INCOME, TAX,ACT,1961,,ARISING,OUT,OF,ORDER,DATED,29/05/2020,PASSED,

IN ITA NO.2660/BANG/2017 AND ITA NO.2548/BANG/2017 (ANNEX-C), FOR THE ASSESSMENT YEAR 2014-2015, PRAYING THIS COURT TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN; ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.2660/BANG/2017 AND ITA NO.2548/BANG/2017

DATED 29/05/2020 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE-C CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER INCOME TAX, CIRCLE-1 EXEMPTIONS BENGALURU AND ETC.

THESE APPEALS ARE COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE DR. JUSTICE K.MANMADHA RAO

ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT)

Both the above appeals are taken up for hearing together since both the appeals arise between the same parties and both the appeals relate to assessment year 2014-15.

¶2ITA.No.167/2022 was admitted on 03.03.2022 to examine the following substantial questions of law: "1. law in deleting the addition's made by the assessing authority towards unaccounted fees charged for UG

and PG seats ignoring evidence brought on record by assessing authority and when collection of capitation fee by assessee is not voluntary which can partake character of income for purpose of section 2(24)(iia) of the Act and section 12(1) as well?

¶2circumstances of the case, the Tribunal's order can be said as perverse in nature as relief to assessee is granted by deleting all additions made by assessing authority?

¶3law in deleting additions made towards fee charged for seats under Management/NRI Quota for undergraduate MBBs Programme, unaccounted fees received from PG Courses, Unaccounted income on account of fee charged for seats filled up against COEMED-K cancellation as per management quota fees and setting aside denial of exemption under section 11 and 12 of the Act ignoring seized materials and intention of legislature in granting exemption under Section 11 and 12 of the Act to educational institutions?"

¶3ITA.No.107/2022 was admitted on 21.02.2022 to examine the following substantial questions of law:

"1. law in deleting the addition's made by assessing authority towards unaccounted fees charged for UG and PG seats ignoring evidence brought on record by assessing authority and when collection of capitation fee by assessee is not voluntary which can partake character of income for purpose of section 2(24)(iia) of the Act and section 12(1) as well?

¶2law in allowing appeals preferred by assessee and in dismissing Revenue's appeal by completely ignoring seized materials and findings given by assessing authority for making additions which were based on seized materials?

¶3Whether on the facts and in the law in deleting additions made towards fee charged for seats under Management/NRI Quota for undergraduate MBBS Programme, unaccounted fees received from PG Courses, Unaccounted income on account of fee charged for seats filled up against COEMED-K cancellation as per management quota fees and setting aside denial of exemption under section 11 and 12 of the Act ignoring seized

materials and intention of legislature in granting exemption under section 11 and 12 of the Act to educational institutions?"

¶4This Court in ITA.No.112/2022 and ITA.No.168/2022, between the same parties considered identical substantial questions of law and answered against the Revenue and in favour of the assessee.

¶5In terms of the said judgment, substantial question of law Nos. 1 and 2 in both the appeals are answered in favour of the assessee and against the Revenue. The substantial question of law No.3 is left open. In terms of the said judgment, both the above appeals also stand dismissed.

Sd/- (S.G.PANDIT) JUDGE

Sd/- (DR.K.MANMADHA RAO) JUDGE NC CT:bms: List No.: 1 Sl No.: 33