BABU JAGJIVAN RAM NATIONAL FOUNDATION,DELHI vs. INCOME TAX OFFICER (E), WARD-1(3), DELHI

PER C.N. PRASAD, JM,

This appeal filed by the assessee is preferred against the order of the Commissioner of Income Tax (Appeals)/NFAC
[herein after referred as “CIT(A)”] dated 22.11.2024 for the A.Y.
2016-17 in withdrawing the exemption allowed under Section 10(26B) of the Act while passing the order u/s. 154 of the Act.
2. The learned Counsel for the assessee at the outset referring to page 92 of the paper book submitted that the AO while framing the assessment under Section 143(3) dated
26.11.2018 held that assessee is an autonomous body established by the Government of India under the Ministry of Social Justice and Empowerment and its income is exempt u/s. 10(26B) of the Act be a body set up for promoting interest of Schedule Casts, subsequently the AO denied the exemption by passing order u/s. 154 of the Act dated 18.12.2018. The learned Counsel stated that all along assessee is claiming exemption u/s.10(26B) of the Act and referred to pages -71
and 76 of the paper book which are assessment order for A.Y.
2012-13 and computation of income for A.Y.2013-14 wherein the AO for the A.Y. 2012-13 while passing the assessment order under Section 143(3) dated 02.03.2015 allowed exemption u/s.10(26B) of the Act. The assessee claimed similar exemption in its computation of incomes for the A.Y’s
2013-14 onwards. Therefore, learned Counsel for the assessee stated that when the assessee is claiming exemption u/s.10(26B) and is being allowed by the AO from A.Y. 2012-13
such exemption cannot be withdraw by passing order u/s.154
of the Act since it is not a mistake apparent from record in allowing exemption u/s. 10 (26B) of the Act while completing the assessment u/s.143(3).
3. On the other hand the learned DR stated that section 11(7) of the Act prohibits the assessee claiming exemption u/s.10(26B) of the Act since the assessee is registered u/s.
12A of the Act.
4. In reply the counsel for the assessee referring to page 103
which is the drop down window in the return of income for A.Y. 2016-17 stated that in the return Assessee could not claim exemption u/s.10(26B) of the Act since there is no option provided for the claim so the assessee claimed exemption u/s.11 which was denied by the AO while passing the assessment order and appeal is pending before the learned
CIT(A) on the denial of section 11 of the Act.
5. At this stage on a querry from the Bench as to why this appeal should not be send back to learned CIT(A) to decide alongwith main appeal which was filed against the denial of exemption u/s.11 which will have bearing on the appeal before us, the learned Counsel for the assessee and learned DR has expressed no serious objection.
6. On hearing both the sides and perusing the orders of the authorities below and since main appeal is against the assessment order passed u/s. 143(3) in denying exemption u/s.11 which is still pending before learned CIT(A), we feel it appropriate to restore this appeal also to the file of the learned
CIT(A) as the outcome of the appeal against denial of exempt under Section 11 has bearing on this appeal, we restore this appeal to the file of the learned CIT(A) who shall decide alongwith main appeal.
7. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 28.11.2025 /-

[M. BALAGANESH] [C.N. PRASAD]
ACCOUTNANT MEMBER
JUDICIAL MEMBER
Dated:28.11.2025
NEHA , Sr.P.S.*