CAWNPORE CARES SOCIETY,KANPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, WARD- 1(1), KANPUR

Learned A. R., at the outset, submitted that the assessee filed its return of income claiming exemption u/s 11 of the Act. It was submitted that the assessee had claimed exemption u/s 11 by mistake as the assessee was not registered u/s 12A however, the assessee being engaged in the running of school was eligible for exemption u/s 10(23C)(iiid) of the Act as the gross receipt of the assessee was less than Rupees One Crore, which is apparent from pages 47 & 48 of the paper book where a copy of balance sheet and profit & loss account is placed. Learned A. R. submitted that CPC had taxed the total gross receipts amounting to Rs.1,85,189/- as its net

Learned D. R., on the other hand, supported the orders of the authorities below.

We have heard the rival parties and have gone through the material placed on record. We find that copy of profit & loss account and balance sheet is placed at pages 47 & 48 of the paper book. The gross receipt as per profit & loss account page 48 is Rs.1,85,189/- and after claiming certain expenses, there is net loss of Rs.97/-. The assessee by mistake had claimed exemption u/s 11 of the Act to which it was not entitled as it was not registered u/s 12AA of the Act but the assessee was eligible to avail exemption u/s 10(23C)(iiid) of the Act as the gross receipts of the assessee is less than Rupees One Crore. We further find that the basic exemption limit has also not been considered in the case of the assessee and tax has been calculated on the gross receipts which is not justified. Therefore, we deem it appropriate to remit the issue back to the file of Assessing Officer who should look into the issue and should pass appropriate order after considering the eligibility of the assessee u/s 10(23C(iiid) of the Act.

In the result, the appeal of the assessee stands allowed for statistical purposes.