COMMISSIONER OF INCOME TAX Vs. NIIT FOUNDATION

JUDGEMENT

(1.) This appeal by the Commissioner of Income Tax (Exemptions) 'CIT(E)' assails the order of the Income Tax Appellate Tribunal 'Tribunal' dtd. 27/5/2020. By our order of 9/5/2024, we had formally admitted the appeal on the following two questions of law:

(2.) For the purposes of evaluating the rival submissions which were addressed, we deem it appropriate to notice the following essential facts. The respondent/assessee is a society registered under the Societies Registration Act, 1860 and also holds a registration under Sec. 12A of the Income Tax Act, 1961 'Act'. It was also accorded recognition under Sec. 80G(5) of the Act in terms of an order dtd. 7/3/2008.

(3.) In Assessment Year 'AY' 2014-15, the assessee filed its Return of Income declaring its taxable income to be 'Nil". The aforesaid Return is stated to have been selected for scrutiny assessment, as a consequence of which a notice came to be issued on 31/8/2015 under Sec. 143(2). During the assessment proceedings, the assessee appears to have been called upon to furnish explanations with respect to the broad nature of activities undertaken by it as well as particulars pertaining to the fee structure, service tax payments, details of contributors and other functions concerning its avowed charitable activity of imparting education.