Education Decision

Educational Institutions and Law

*On account of non-renewal of the lease agreement by Z , M is now no longer able to run the Institute from the suit property. M is having a valid permission from 2004 till date. Around 250 students are taking education therein. It is not the case that M is not having adequate infrastructure. However, on account of the peculiar circumstances, M will have to shift to the new location. So, Supreme Court should exercise its extraordinary jurisdiction under Article 142 of the Constitution of India to meet the ends of justice to save career of students.*  - A.J. Shetty and Co. Pvt Ltd v. St. Antony's Charity Institutes [2025] GCtR 929 (SC)

*AO had not demonstrated the club expenditure as non-business expenditure. It seemed that the AO had disallowed this expenditure of Rs.6,205/- by nomenclature of the expenditure only. There is  justification of AO's actions. Therefore, the same is allowed as business expenditure. Expenditure incurred for the purpose of the assessee’s own business undisputedly abandoned by the assessee, if revenue in nature and incurred wholly and exclusively for the purpose of assessee’s business is allowable under section 37(1) of the Income-tax Act, 1961 if no new asset has come into existence. The only requirement which has to be seen is that the expenditure is of revenue nature and not capital nature.* - Nijhawan Travel Services Pvt Ltd v. ACIT [2025] GCtR 935 (ITAT, Delhi)