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Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI
impugned order dated 13.1.2017, passed by the Ld. CIT (Appeals)
Haldwani for the quantum of assessment passed u/s 143(3) for the assessment year 2012-13. In the grounds of appeal assessee is mainly aggrieved by addition of Rs. 41,43,956/- after denying exemption u/s 11 to the assessee on the ground that section 12AA registration granted on 29.11.2016 was w.e.f. 1.4.2013 and does not cover the impugned assessment year.
The facts in brief are that the assessee society is running educational institution under the name and style of Mallikarjun School which is imparting formal education from Primary to 12th Standard. The Society applied for registration u/s 12AA w.e.f.
1.4.2013, but Ld. CIT Haldwani rejected the application on the basis of the judgment passed by Uttarakhand High Court in the case of Queens Educational society, since reported in 177 Taxmann 326.
Aggrieved by the said order of the Ld. CIT assessee filed an appeal before the Hon’ble Tribunal, wherein the Tribunal has set aside the matter back to the Ld. CIT with certain directions. In pursuance of such directions, and after proper examination of records Ld. CIT (Exemptions) allowed the registration u/s 12AA, but w.e.f. 1.4.2013.
In the mean time assessee’s case for assessment year 2012-13 was selected for scrutiny and assessee’s claim for exemption u/s 10(23C) was rejected by the AO on the ground that the said recognition has not been granted to the assessee. Accordingly, the excess of income over expenditure was brought to tax.
Before us the Ld. Counsel for the assessee, Shri K. Sampath submitted following chronology of events and pointed out that now in wake of judgment of Hon’ble Jurisdictional High Court in the case of the assessee, it has been recognised/registration has been granted u/s 10(23C) (vi):-
28.12.2001 Registered under the Societies Registration Act, 1860 2. Registered with CBSE, New Delhi 3. 20.09.2011 Application made to CCIT u/s 1 0(23C) (vi) of the I.T. Act, 1961 4. 13.09.2012 CCIT refuses registration 5. Application made to CIT u/s 12AA w.e.f. 01.04.2013 6. 24.09.2013 Return of income for AY 2012-13 filed at NIL 7. 27.03.2015 Assessment completed at Rs. 41,43,956/- by ITO ~ 8. 16.11.2016 Registration u/s 12AA granted w.e.f. 01.04.2013 qua 154 ----- Rectification Order 9. 13.01.2017 CIT(A) dismisses assessee's appeal against assessment order Uttarakhand High Court allows Writ of Society 10. 17.11.2017 regarding registration u/s 1 0(23C) (vi)
Now the assessee’s income is liable to be exempted u/s 10(23C). In support he filed the copy of judgment of Hon’ble Uttarakhand High Court dated 17.4.2013 in writ petition No. 377 of 2013 order dated 17.11.2017.
On behalf of the department adjournment was sought on the ground that Ld. CIT (DR) is on leave. However Ld. Sr. DR was present in the open court and it was brought to his notice that, since this issue now stand settled by the Hon’ble Jurisdictional High Court in 3 assessee’s own case, therefore we are proceeding to decide the appeal following the said judgment.
Here in this case, the assessee in return of income had claimed exemption u/s 10(23C) on the ground that it has applied all its income for educational purpose amounting to Rs. 1,22,28,574/-. The said exemption was denied by the AO on the ground that its application for exemption u/s 12(23C) has not been recognised. Now the Hon’ble Uttarakhand High Court in the case of assessee vide judgment order dated 17th November, 2017, since reported in (2018) 90 taxmann.com 160 has granted exemption to the assessee, therefore, now the assessee’s income from its educational activities needs to be exempted. Accordingly, AO is directed to give exemption of section 10(23C) in line with the judgment of Hon’ble High Court.
In the result appeal of the assessee is allowed as indicated in the aforesaid manner.