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ITA No.5704/Del/2025

ARYA VIDYA SABHA

IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH “F” NEW DELHI

BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER

AND

SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER

I.T.A No.5704/Del/2025

Assessment Year: 2016-17

ARYA VIDYA SABHA, Vs. INCOME TAX OFFICER,

(Through its Principal Officer Shri Arvind Exemption Ward,

Kumar), National Faceless Appeal

Dudhana, District-Muzaffarnagar, Centre (NFAC),

Uttar Pradesh 251 309. Ghaziabad, Uttar Pradesh.

PAN No.AABAA5260A

Appellant Respondent

Assessee by Shri Ashwini Kumar, AR

Revenue by Ms. Harpreet Kaur Hansra, Sr. DR

Date of hearing: 07.05.2026

Pronouncement on 13.05.2026

O R D E R

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1. This appeal arises from order dated 22.07.2025, passed u/s 250 of

the Income Tax Act, 1961 (hereafter as “the Act”), by Ld. CIT(A)-NFAC,

Delhi. In this case, the assessee is seen to be running five Educational

Institutions. The return of income was filed on 28.03.2018 showing ‘NIL’

income. The assessee had claimed exemption u/s 10(23C)(iiiad) of the Act.

The assessee had also filed details of receipts individually of the 5

Institutions and demonstrated that the receipts in each case were less

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ARYA VIDYA SABHA

than Rs.1 crore p.a. and thereafter had claimed the exemption u/s

10(23C)(iiiad) of the Act.

1.1 The Ld. AO disallowed the claim of exemption filed by the assessee

on the ground that the aggregate annual receipts of the five Educational

Institutions was in the region of Rs.3,00,73,132/-. On this basis the Ld. AO

held that the aggregate receipts were significantly more than Rs.1 crore

and thus, he held that the assessee was not entitled for any exemption u/s

10(23C)(iiiad) of the Act.

1.2 Aggrieved with this action, the assessee approached the CIT(A)

where also he could not succeed since the Ld. CIT(A) has given a finding

that all the five Educational Institutions are being managed by the

assessing society and thus, the aggregate of receipts deserve to be

adopted for the purposes of section 10(23C)(iiiad) of the Act.

1.3 The assessee, being further aggrieved, has approached the ITAT

with grounds challenging the action of authorities below.

2. Before us the Ld. AR argued with the help of a paper book and

demonstrated that the audited financial statements of the assessee and

the five Educational Institutions were duly presented before the Ld. AO

and it was not proper on his part to disregard the same and claim that

such audited accounts were never presented before him. The Ld. AR filed

the audited accounts before this Bench with a lengthy declaration from

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the Principal Trustee to the extent that such documents were very much

before the authorities below. Thereafter, the Ld. AR relied on the case of

Children’s Education Society reported in 34 taxmann.com 285 (Karn.).

The Ld. AR read out various relevant paragraphs from this case law and

especially brought to our notice para 22 of this order whereby it has been

held that eligibility for exemption should be considered for each

Institution separately since they would be controlled under various

statutes for specific purposes. It is held in this case law that even if the

management of these Educational Institutions would be in single hand but

for all intents and purposes they are different and independent entities.

The Ld. AR also relied on the case of M/s Vivekanand Society of Education

& Research [ITA No.23/2014, order dated 29.12.2017] (J&K – HC). The Ld.

AR pointed out that in this judgment the issue is even more clearly set out

in para 10 and the question of law has been answered in favour of the

assessee following the Children’s Education Society case (supra).

2.1 The Ld. DR relied on the orders of the authorities below and stated

that for all intents and purposes the society was maintaining consolidated

accounts and the five Institutions were running under its auspices.

3. We have carefully considered the rival submissions and have gone

through the documents before