Barkatullah Vishwavidyalaya… vs ITO | ITAT Indore 2025

आयकर अपीलीय अिधकरण, इंदौर Ɋायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE

BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER

ITA No.871/Ind/2024 Assessment Year:2019-20

आदेश / O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by order of first appeal dated 06.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi ["CIT(A)"] which in turn arises out of assessment-order dated 21.09.2021 passed by learned NFAC, Delhi ["AO"] u/s 143(3) r.w.s. 144B of Income-tax Act, 1961 ["the Act"] for Assessment-Year ["AY"] 2019-20, the assessee has filed this appeal on the grounds as mentioned in Form No. 36 (Appeal Memo).

The controversy in present case is very limited and does not require much elaboration of facts. The assessee is a charitable institution registered

by CIT (Exemption), Bhopal vide order dated 17.06.2019 u/s 12AA of the Act from AY 2019-20 under consideration, copy of first page of registration certificate is scanned and re-produced below:

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PAN: AAAJB0916A AAAJB0916A AAAJB0916A AAAJB0916A AAAJB0916A AAAJB0916A BHOPAL/2018- 19/12AA/10569 | Registration No: CIT EXEMPTION BHOPAL/12AA/2' 019-20/A/10056 | Order No: ITBA/EXM/S/12 AA/2019- 20/1016373495( | Date: 17/06/2019

S.No. | Conditions 1 | As and when there is a move to amend or alter the objects/rules and regulations of the applicant, prior approval of the Commissioner shall be sought along with the draft of the amended deed and no such amendment shall be effected until and unless the approval is accorded. 2 | In the event of dissolution, surplus and assets shall be given to an organization, which has similar objects and no part of the same will go directly or indirectly to anybody specified in section 13(3) of the Income Tax Act, 1961. 3 | In case the trust/institution is converted into any form, merged into any other entity or dissolved in any previous year in terms of provisions of section 115TD, the applicant shall be liable to pay tax and interest in respect of accreted income within specified time as per provisions of section 115TD to 115TF of the Income Tax Act, 1961 unless the application for fresh registration under section 12AA for the said previous year is approved by the Commissioner. 4 | The Trust/ Institution should quote the PAN in all its communications with the

On the strength of above registration granted by Income-tax Department, which is in force and not revoked/cancelled, the assessee is entitled to exemption u/s 11/12 of the Act. Accordingly, for AY 2019-20, the assessee claimed exemption u/s 11/12 in the return of income, copy of first page of computation of total income is scanned and re-produced below:

HUSAIN SHABBIR HUSAIN SHABBIR & COMPANY | Tel.: (0) 0755-4255027 (M) 9425176433 103-104, BHOPAL PLAZA, HAMIDIA ROAD, BHOPAL Assessee Name: M/S BARKATULLAH VISHWAVIDHYALAYA Address: HOSHANGABAD ROAD BHOPAL BHOPAL BHOPAL - 462026 Mobile Number: 7869500452 E-mail: CA.SHABBIRHUSSAIN@GMAIL.COM PAN: AAAJB0916A Incorp. Date: 23/04/1973 | BRUPAL Assessment Year : 2019-20 Previous Year : 01-04-2018 To 31-03-2019 Return Filed u/s : 139(4) After Due Date Ward/Circle/Range: The session of Residential Status Due Date of Return Interest Calc.Upto | 24 (07 (0.44) Current A/c# 34466229937 Bank: STATE BA Current A/c# 10020001027 Saving A/c# 10020001891 Bank: STATE BA Current A/c# 10020001891 Bank: STATE BA Current A/c# 10020001212 Bank: STATE BA Current A/c# 34143196236 Bank: STATE BA Current A/c# 4772201000054 Bank: STATE BA Current A/c# 4772201000054 Bank: CANARA B. Saving A/c# 344304896362 Bank: STATE BA | NK OF INDIA IFSC: SBINO003537 NK OF INDIA IFSC: SBINO003537 NK OF INDIA IFSC: SBINO003537 NK OF INDIA IFSC: SBINO003537 NK OF INDIA IFSC: SBINO003537 NK OF INDIA IFSC: SBINO003537 NK OF INDIA IFSC: SBINO003537 NK OF INDIA IFSC: SBINO003537 IFSC: PUNB0296500 ANK NK OF INDIA IFSC: CNRB0004772 NK OF INDIA IFSC: SBINO003537 (ABBHY) | Page: 1 COMPUTATION OF INCOME | Rs. Rs. Rs. SUMMARY OF TOTAL INCOME Income u/s 11 or 12 Agregate of Income as per Schedule-AI Less: Deductions / Exemptions claimed u/s 11 | 1314630617 purposes in India during the previous year (Max. 13% of the Income of trust) | 183165919 (-)1314630617 TOTAL INCOME | NIL GROSS TOTAL INCOME | NIL CALCULATION OF TAX | === Tax on Total Income Less: Tax Deducted/Collected at Source From TDS from Other Sections | अधिकारी (लेखा) बरक्तिजेल्देशिकाडिकाडिकालय, मोपाल Net Tax Refundable (Subject to interest u/s 244A) | (-)22110505

- 4. However, while framing assessment u/s 143(3), the AO has denied exemption claimed by assessee on the footing that the assessee's application for registration u/s 10(23C)(vi) had been rejected by authorities. During first-appeal, the CIT(A) upheld AO's order. Now, the assessee has come in this appeal before us assailing the orders of lower authorities. - 5. We have heard learned Representatives of both sides and carefully considered the orders of lower-authorities. On a careful consideration of the provisions of Act, we find that there are two separate exemption provisions of section 11/12 and 10(23C)(vi); there are two separate conditions/ stipulations in law for availing those exemptions; and moreover there are two separate registrations involved for respective exemptions. The exemption u/s 11/12 is enabled by registration u/s 12AA. In present case, the assessee is holding a valid registration u/s 12AA which entitles the assessee to claim exemption u/s 11/12. Furthermore, the assessee has availed exemption u/s 11/12 in the return of income and not u/s 10(23C)(vi). Under the scheme of Act, unless the registration u/s 12AA is revoked/ cancelled, the authorities cannot deny exemption u/s 11/12 to assessee. Therefore, in this situation, the lower authorities are clearly wrong in denying exemption u/s 11/12 claimed by assessee by stating that the assessee's application for registration u/s 10(23C)(vi) had been rejected. We therefore set aside the orders of lower-authorities and direct the AO to allow exemption u/s 11/12 to assessee after necessary verification, if any.

Resultantly, this appeal is allowed for statistical purpose.

Order pronounced in open court on 04/07/2025

Sd/- Sd/-

(PARESH M. JOSHI) (B.M. BIYANI)

JUDICIAL MEMBER ACCOUNTANT MEMBER

Indore

िदनांक /Dated : 04/07/2025

Patel/Sr. PS

Copies to: (1) The appellant

(2) The respondent

(3) CIT (4) CIT(A)

(5) Departmental Representative

(6) Guard File

By order E COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore

BARKATULLAH VISHWAVIDYALAYA,BHOPAL vs. ITO NFAC, DELHI