IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER I.T.A No.5902/Mum/2025 (Assessment Year: 2012-13)

Holy Family School vs Income Tax Officer (Exemption)

Chakala, Andheri (East), Ward 1(3), Mumbai-400093 6^th Floor MTNL TE Building, Pedder PAN : AAATH0076M road, Mumbai-400026 APPELLANT RESPONDENT Assessee by : Ms. Vasanti B. Patel a/w Shri M.A. Goel Respondent by : Shri Ritesh Misra (CIT DR)

Date of hearing : 07/01/2026 Date of pronouncement : 14/01/2026 O R D E R Per: Anikesh Banerjee (JM):

The instant appeal of the assessee was filed against the order of the NFAC Delhi [for brevity, ‘Ld.CIT(A)’] order passed under section 250 of the Income-tax Act, 1961 (for brevity, ‘the Act) for the Assessment Year 2012-13, date of order 28/07/2025. The impugned order was emanated from the order of the Learned Income Tax Officer (E) Ward 1(3), Mumbai (for brevity, ‘the Ld.AO’), order passed u/s143(3) r.w.s. 147of the Act, date of order 23/12/2019.

2. The brief facts of the case are that the assessee is a Public Trust registered in the year 1955 with the Charity Commissioner, Mumbai Region, under the Maharashtra Public Trusts Act, 1950. The assessee-trust is also registered under section 12A(a) of the Act and enjoys approval under section 80G of the Act. The assessee is assessed in the status of an Association of Persons (AOP–Trust) from year to year. The assessee has been established exclusively for the purpose of education and exists solely for the promotion of education. In furtherance of its charitable objects, the assessee has been claiming exemption under section 11 of the Act. The assessee is running “Holy Family High School” at Chakala, Andheri (East), Mumbai, and has obtained the requisite registration and recognition from the Education Department, Government of Maharashtra. The statutory audit of the accounts of the assessee was completed on 21.04.2014, which was beyond the time limit prescribed under sections 139(1) and 139(4A) of the Act for filing the return of income, even as a belated return. Consequently, the assessee could not file its return of income for the relevant assessment year within the prescribed time. Subsequently, the assessee filed its return of income for AY 2012–13 on 30.04.2019 in response to a notice issued under section 148 of the Act, declaring total income at Nil. The Ld. AO completed the assessment under section 143 read with section 147 of the Act, determining the total income at Rs. 68,29,660/-. The said addition comprised disallowance of capital expenditure amounting to Rs.32,95,282/- claimed as application of income under section 11(1) of the Act and denial of accumulation of income amounting to Rs. 35,34,377/-

claimed at 15% under section 11(1)(a) of the Act.

The assessment was completed by denying the benefit of exemption under section 11 of the Act on the ground that the activity of earning income from the use of hall, classrooms, and ground belonging to the assessee amounted to “advancement of any other object of general public utility.” The Ld. AO held that the assessee was engaged in providing services in relation to trade, commerce, or business for a consideration by way of renting of the hall, and was therefore hit by the proviso to section 2(15) of the Act inserted with effect from 01.04.2009. Accordingly, it was held that the assessee was not entitled to exemption under section 11 of the Act in view of the provisions of section 13(8) of the Act. The aggrieved assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the impugned assessment order. Being aggrieved assessee filed an appeal before us.

3. The Ld. AR advanced arguments and filed a paper book comprising pages 1 to 92, which has been placed on record. Ld. AR stated that the assessment was duly completed by considering entire hall receipt amount to Rs.7140478/- as business income in that sequence denying the sum of Rs.32,95,282/