IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 407/Agr/2025 Assessment Year: 2018-19 Kanha Education Society, Vs. Income-tax Officer Geeta Colony, Dal Bazar, Gwalior. (Exemption), Gwalior.

PAN :AABAK8463F (Appellant) (Respondent)

Assessee by Sh. Rajendra Sharma, Advocate Department by Sh. Anil Kumar, Sr. DR Date of hearing 20.11.2025 Date of pronouncement 08.12.2025

ORDER

PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:

This appeal has been preferred by assessee against the impugned order dated 01.07.2025 passed in Appeal No. NFAC/2017-18/10359370 by the Ld. ADDL/JCIT(A)-1, Guwahati u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2018-19, wherein the ld. CIT(Appeals) has dismissed assessee’s first appeal.

2. Brief facts state that the appellant is an educational society registered under the provisions of M.P. Societies Registration Act, 1973. The main and dominant object of the society is purely for educational purposes in terms of section 2(15) of the Act and not for the purposes of profit. The aggregate receipts of the assessee society for the year under consideration do not exceed Rs. one crore. Assessee filed ITR-7 along with Form-10B for A.Y. 2018-19 on 09.10.2018, declaring nil income. CPC, Bangalore, vide, communication dated 04.12.2019, intimated the appellant assessee for the proposed adjustment u/s. 143(1)(a)(ii) of the Act, amounting to Rs.95,58,383/-. Further, CPC, vide order dated 10.03.2020 passed u/s. 143(1) of the Act computed assessee’s income at Rs.95,58,383/- as against nil. Appellant assessee filed rectification application on 18.03.2024 against the order passed u/s. 143(1) dated 10.03.2020. The same was rejected by the Assessing Officer, vide order dated 20.03.2024 passed u/s. 154 of the Act.

3. Aggrieved assessee filed first appeal against the order dated 20.03.2024 passed u/s. 154 of the Act, before Ld. CIT(Appeals), which was dismissed.

4. Appellant assessee has approached this Tribunal against the impugned order dated 01.07.2025 passed by the ld. CIT(Appeals), raising following ground :

“ON THE FACTS & in the circumstances of the case, the learned CIT(A) has erred in law & fact in appreciating the fact that the appellant educational institution is existing solely for educational purposes and not for the purpose of profit, its gross receipts do not exceed Rs.1.00 Crore & it is entitled to exemption of its income u/s 10 (23C)(iiiad) of the Income Tax Act, 1961. It is prayed that the claim of exemption of income u/s 10(23C) (iiiad) of the Income Tax Act, 1961 be allowed as per application made u/s 154 before the AO & as contested in the appeal before the CIT(A), NFAC.

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5. Perused the records. Heard learned AR for the appellant assessee and learned Sr. DR for the respondent revenue.

6. Learned AR has submitted that learned CIT(Appeals) has committed a mistake by passing the impugned order, ignoring the fact that the impugned disallowance was made by CPC, Bangalore merely on the ground that the assessee was not registered u/s. 12A/12AA or 10(23C)(iv) or 10(23C)(v) or 10(23C)(vi) or 10(23C)(via) of the Act, but has claimed exemption in the ITR, further submitting that the appellant society is entitled to claim exemption u/s. 10(23C)(iiiad), as its gross receipts did not exceed Rs.1.00 crore and no approval either u/s. 10(23C)(iiiad) or any registration u/s. 12A/12AA is required for claiming the exemption u/s. 10(23C)(iiiad) of the Act. Prayed to restore the matter back to the ld. CIT(Appeals) for passing the order on merits a fresh.

7. Learned Sr. DR has submitted that the assessee trust was neither registered u/s. 12A nor u/s. 10(23C) of the Act. However, when questioned by the Bench as to whether any such registration is required for claiming exemption u/s. 10(23C)(iiiad) of the Act, learned Sr. DR, instead of clarifying the issue, prayed to restore the mat