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The Tax Publishers2013 TaxPub(DT) 0141 (Agra-Trib) : (2012) 150 TTJ 0059 : (2013) 056 SOT 0517 INCOME TAX ACT, 1961 --Exemption under section 10(22)--Educational institution Disallowance made on protective basis vis-a-vis addition on substantive basis--Assessee an educational institution had claimed exemption of its income under section 10(22). Assessing officer observed that accounts officer S. Anwar, the them Registrar of the institute was running the institute for personal projects and had used the institute for his personal gains, therefore, he disallowed the expenditure of such personal advantage gained by S. Anwar and that too on protective basis, to be taxed in the hands of S. Anwar on substantive basis. *Held:>Was not justified as merely because the employee of the institution had gained personal benefit on account of his position or misappropriate funds of the institution, it could not be said that the character of institution as a whole was changed from non-profit to profit. More so, when the disallowance was made in the case of assessee in protective basis and the same was added in the hands of S. Anwar on substantive basis, then, the disallowance made on protective basis could not be sustained. In the ITAT, Agra Bench Bhavnesh Saini, J.M. & A. L. Gehlot, A.M. Addl. CIT v. Jamia Urdu ITA Nos. 221 to 224/Agra/2011 A.Y. 1997-98 & 1998-99 5 October, 2012 Income-tax Act, 1961, sections. 4 & 10(22); In favour of: Assessee Appellant by* : Waseem Arshad Respondent : P. K. Sehgd ORDER *A. L. Gehlot, A.M.* All these four appeals have been filed by the Revenue against four separate orders, all dated 7-3-2011, passed by the learned Commissioner (Appeals), Ghaziabad for assessment years 1997-98, 1997-98, 1998-99 and 1998-99 respectively. 2. Common grounds have been raised by the Revenue as all these appeals are based on identical set of facts. Therefore, for the sake of convenience, all these appeals are decided by this common order. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 0141 (Agra-Trib) : (2012) 150 TTJ 0059 : (2013) 056 SOT 0517

INCOME TAX ACT, 1961

--Exemption under section 10(22)--Educational institution Disallowance made on protective basis vis-a-vis addition on substantive basis--Assessee an educational institution had claimed exemption of its income under section 10(22). Assessing officer observed that accounts officer S. Anwar, the them Registrar of the institute was running the institute for personal projects and had used the institute for his personal gains, therefore, he disallowed the expenditure of such personal advantage gained by S. Anwar and that too on protective basis, to be taxed in the hands of S. Anwar on substantive basis. Held:>Was not justified as merely because the employee of the institution had gained personal benefit on account of his position or misappropriate funds of the institution, it could not be said that the character of institution as a whole was changed from non-profit to profit. More so, when the disallowance was made in the case of assessee in protective basis and the same was added in the hands of S. Anwar on substantive basis, then, the disallowance made on protective basis could not be sustained.

In the ITAT, Agra Bench

Bhavnesh Saini, J.M. & A. L. Gehlot, A.M.

Addl. CIT v. Jamia Urdu

ITA Nos. 221 to 224/Agra/2011

A.Y. 1997-98 & 1998-99

5 October, 2012

Income-tax Act, 1961, sections. 4 & 10(22); In favour of: Assessee

Appellant by : Waseem Arshad

Respondent : P. K. Sehgd

ORDER

A. L. Gehlot, A.M.

All these four appeals have been filed by the Revenue against four separate orders, all dated 7-3-2011, passed by the learned Commissioner (Appeals), Ghaziabad for assessment years 1997-98, 1997-98, 1998-99 and 1998-99 respectively.

2. Common grounds have been raised by the Revenue as all these appeals are based on identical set of facts. Therefore, for the sake of convenience, all these appeals are decided by this common order.