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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
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
Barkatullah Vishwavidyalaya – AY 2019-20 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:
Barkatullah Vishwavidyalaya – AY 2019-20 3. 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:
Page 3 of 6 Barkatullah Vishwavidyalaya – AY 2019-20 Page 4 of 6
Barkatullah Vishwavidyalaya – AY 2019-20 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.
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.
Barkatullah Vishwavidyalaya – AY 2019-20 6. Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 04/07/2025