, आयकर अपीलीय अधिकरण धिशाखापटणम पीठ में

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH BEFORE SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER &

SHRI BALAKRISHNAN S., ACCOUNTANT MEMBER / ITA No.446-449/Viz /2024 & SA No. 17 to 20/Viz/2024 आ.अपी.सं

( / Assessment Year: 2015-16 to 2018-19)

निर्धारण वर्ा

Maqbool Hussain Educational Vs. Income Tax Officer Welfare Society (Exemption Ward)

Visakhapatnam Visakhapatnam [PAN : AAABM0227F]

/ Appellant / Respondent अपीलधर्थी प्रत्‍यर्थी

/Assessee by: Shri P.Murali Mohanarao, AR निर्धाररती द्वधरध /Revenue by: Dr.Satyasai Rath, CIT-DR रधजस्‍व द्वधरध /Date of hearing: 03/03/2025 सुिवधई की तधरीख /Pronouncement on: 05/03/2025 घोर्णध की तधरीख / ORDER आदेश PER K. NARASIMHA CHARY, J.M:

Aggrieved by the orders dated 11/10/2024 and 14/10/2024 passed by the learned Commissioner of Income Tax (Appeals) (“Ld.CIT(A)”), National Faceless Appeal Centre, Delhi , in the case of The Maqbool Hussain Educational Welfare Society (“the assessee”) for the assessment year 2015- 16 to 2018-19, assessee preferred these appeals along with stay applications. Since the facts involved in all these appeals are same, we deem it just and convenient to dispose of all these appeals by way of this common order, taking the facts of ITA 446/Viz/2024 for the assessment year 2015-16 as a lead case.

2. Briefly stated relevant facts are that the assessee society is registered under the provisions of Registration of Societies Act, 1860 on 14/3/1990 and obtained approval under section 10(23c)(vi) of the Income Tax Act, 1961 (“the Act”) on 20/12/2007 granted by the Chief Commissioner of Income Tax, Visakhapatnam. Assessee society set up the educational institutions, namely, AQJ college of Degree and P.G. College, AQJ Centre for PG Studies and AQJ College of Pharmacy, and was running the same during the subject financial year.

3. For the assessment year 2015-16, assessee filed the return of income on 31/3/2016 declaring nil income, after claiming exemption under section 10(23c)(vi) of the Act to the tune of Rs.2,34,62,119/-. During the course of assessment, learned Assessing Officer noticed that apart from carrying out the activity of imparting education for graduation and post-graduation courses like B.Sc.,B.Com., MBA., and MCA, the assessee also carrying out short-term courses like coaching for competitive examinations like I-CET, PGCET, banking recruitment, group 1 and 2 services etc., and derived more than 52.72% of income from such activities. According to the learned Assessing Officer such activity does not fall in the category of education and amounts to business. Learned Assessing Officer, therefore, brought to tax the difference between the receipts from and the expenditure on such activity. He also disallowed the depreciation on assets stating that disallowance on the assets acquired towards utilization of funds amounts to double benefit and also a sum of Rs. 19 lakhs towards the consideration received on purported sale of books.

4. Aggrieved assessee preferred appeal before the learned CIT(A). By way of impugned order, the learned CIT(A) upheld the additions stating that the amount collected from the students for short term courses will not come under the purview of deduction under section 10(23c)(vi) of the Act, where it is clearly mentioned that the institution eligible for the deduction should not be for the purpose of profits. In respect of the addition on account of depreciation also learned CIT(A) confirmed the findings of the learned Assessing Officer. Hence this appeal.

5. It is the argument of the learned AR that though the learned Assessing Officer referred to the decision of the Hon’ble Apex Court in the case of Sole Trustee, Loka Shikshana Trust 101 ITR 234 (SC), he failed to apply the same appropriately to the facts of the case. He placed reliance on the decision of the coordinate bench in the case of Assistant Director of Income Tax vs. Hyderabad Study Circle in ITA no. 1645/Hyd/2013 wherein coordinate Bench noticed the