ARDAR EDUCATIONAL SOCIETY,VIZIANAGARAM vs. THE COMMISSIONER OF INCOME TAX(EXEMPTION),, HYDERABAD

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 596/VIZ/2018

Ardar Educational Society, vs. The CIT (Exemptions), D.No. 8-24-36, Konada Hyderabad. Junction, Kotha Popperla Village, Pusapatirega Mandal, Vizianagaram. PAN No. AACAA 5138 J (Appellant) (Respondent)

Assessee by : Shri C. Subrahmanyam, FCA. Department By : Shri D.K. Sonawal, CIT DR Date of hearing : 18/03/2019. Date of pronouncement : 22/03/2019. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Exemptions), Hyderabad, dated 31/08/2018. 2. Facts of the case, in brief, are that the assessee-Ardar Educational Society is a registered society, registered under the Societies Registration Act XXI of 1860. The nature of activities of the society is to provide good quality education to the children. The aims of the society are for imparting education for overall

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development of children and youth. The society has filed an application in Form No. 56D on 06/08/2017 before CIT(E), Hyderabad seeking exemption under section 10(23C)(vi) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). The CIT(E), Hyderabad passed an order on 31/08/2018 granting registration to the society from Assessment Year 2018-19 onwards under section 10(23C) instead of Assessment Year 2017-18 onwards. The case of the assessee before us is the registration under section 10(23C) has to be granted to the assessee for the Assessment Year 2017-18 onwards on the ground that the assessee has filed an application on 16/08/2017 seeking exemption for Assessment Year 2017 & 2018. As per proviso to section 10(23C), if the application is made on or before 30th day of September of the relevant assessment year from which exemption is sought, for the same assessment year exemption has to be granted. 3. We have heard both the sides, perused the material available on record and the order of the CIT(E). 4. The only issue for consideration before us is whether assessee is entitled for registration under section 10(23C) for the Assessment Year 2017-18 are not. It is a fact that assessee has filed an application on 06/08/2017 i.e. before 30/09/2017 seeking

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exemption for Assessment Year 2017-18. The ld. CIT(E) passed an order dated 31/08/2018 granting approval for the Assessment Year 2018-19. The proviso to section 10(23C) provides as under:- “Provided also that in case the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in the first proviso makes an application on or after the 1st day of June, 2006 for the purposes of grant of exemption or continuance thereof, such application shall be made on or before the 30th day of September of the relevant assessment year from which the exemption is sought.” From the above, it is clear that if eligible assessee makes an application on or before 30th day of September of the relevant assessment year, exemption has to be granted for the very same assessment year. In this case, the assessee has made an application on 06/08/2017, therefore, the assessee is entitled for registration under section 10(23C) for the Assessment Year 2017-18. Thus, we set aside the order passed by the ld. CIT(E) and direct him to grant exemption to the assessee-society for the Assessment Year 2017-18 onwards. Ordered accordingly. 5. In the result, appeal filed by the assessee is allowed. Order Pronounced in open Court on this 22nd day of March, 2019.

Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated: 22nd March, 2019. vr/-

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Copy to: 1. The Assessee-Ardar Educational Society, D.No. 8- 24-36, Konada Junction, Kotha Popperla Village, Pusapatirega Mandal, Vizianagaram. 2. The Revenue-The CIT(Exemptions), Hyderabad. 3. The D.R., Visakhapatnam. 4. Guard file. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.