DY. COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE, PUNE, SWARGATE,PUNE vs. MAHARASHTRA STATE BOARD OF SECONDARY & HIGHER SECONDARY EDUCATION, PUNE

Facts

The assessee, Maharashtra State Board of Secondary & Higher Secondary Education, an artificial juridical person, claimed exemption under Section 10(46) in its income tax return for AY 2022-23. The CPC rejected this claim and made an addition of Rs. 5,91,66,438. The assessee argued that it had inadvertently claimed exemption under Section 10(46) but was actually entitled to exemption under Section 10(23C)(iv), for which it had obtained prior approval from the PCIT for the relevant assessment years.

Held

The Tribunal upheld the Ld. Addl. JCIT(A)'s decision, ruling that the assessee was entitled to the exemption under Section 10(23C)(iv) since the necessary approval was in place for the assessment years 2022-23 to 2026-27. The Tribunal emphasized that an inadvertent error in claiming the wrong section (10(46) instead of 10(23C)(iv)) should not deprive the assessee of a legitimate claim. Consequently, the Revenue's appeal was dismissed, and the assessee's cross-objection was rendered infructuous and also dismissed.

Key Issues

Whether an assessee, possessing prior approval for exemption under Section 10(23C)(iv) of the Income Tax Act, can be denied such exemption solely because of an inadvertent claim under a different section (Section 10(46)) in the original return of income.