JOGINAPALLY BR EDUCATIONAL SOCIETY,HYDERABAD vs. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), HYDERABAD

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ITA 108/HYD/2020Status: DisposedITAT Hyderabad29 June 20213 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal permitted the assessees to withdraw their appeals. This was based on the understanding that with approval under Section 10(23C), registration under Section 12AA is not required due to a newly inserted proviso.

What were the facts?

The assessees had filed appeals against orders of the CIT (Exemptions) regarding registration under Section 12AA. Subsequently, the assessees obtained approval under Section 10(23C)(vi) of the Act.

What were the issues?

Whether an assessee requires registration under Section 12AA if they have already obtained approval under Section 10(23C), considering recent amendments.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 10(23C)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “A”, HYDERABAD

For Appellant: Shri S. Rama Rao
For Respondent: Shri P. Chandra Sekhar, DR, Shri S. Rama Rao, Shri P. Chandra Sekhar, DR
Hearing: 30/06/2021Pronounced: 05/07/2021
2.

At the outset, the Ld. AR for the assessee placed before us letters dated 29/06/2021 and submitted that the assessee got relief pursuant to CIT (E)’s order dated 6/01/2020 wherein the Ld. CIT (E) granted approval to the assessee U/s. 10(23C)(vi). It was further mentioned that accordingly to the newly inserted proviso to section 12AA, for the assessee there is no required to obtain registration U/s. 12AA since the assessee has already been granted approval U/s. 10(23C) of the Act. Therefore, the assessees desire to withdraw their present appeals. The relevant portion from the assessee’s letter (supra) is extracted herein below for reference:-

“9. It is submitted that in the meantime the appellant also filed an application for grant of registration U/s. 10(23C) of the IT Act for the assessment years 2016-17 and onwards. The Hon’ble ITAT vide order dated 20/12/2019 directed that approval U/s. 10(23C) be granted for the assessment year 2016-17 and onwards. The CIT € consequently vide order dated 06/01/2020 granted approval U/s. 10(23C)(vi) of the Act. There is an amendment to section 11 which amended sub- section (7) and also inserted a proviso to sub-section (7). Because of the amendment, section 10(23C) and section 11 do not operate together. If section 11 were to be granted, approval granted U/s. 10(23C) has to be withdrawn. The appellant is already granted approval U/s. 10(23C) of the Act. Therefore, there is no requirement for the appellant to obtain the registration U/s. 12AA of the Act as accordingly to the newly inserted proviso, both cannot exist.

10.

In view of the above, the appellant is of the view that the appeal filed may be treated as redundant without prejudice to the contention that an application for registration U/s. 12A can

always be filed even registration earlier granted U/s. 12A was cancelled.”

3.

Further on perusal of the letters dated 30/06/2021 filed by the assessees seeking permission to withdraw their present appeals, we permit the assessees to withdraw these appeals.

4.

In the result, two appeals filed by the assessees are dismissed as withdrawn.

Pronounced in the open Court on the 05th July, 2021.

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