DY. COMMISSIONER OF INCOME TAX(EXEMPTION), BHOPAL, BHOPAL vs. INDORE EDUCATION AND SERVICE SOCIETY, INDORE

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ITA 495/IND/2023Status: HeardITAT Indore06 September 2024AY 2022-23Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)6 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, finding no error or illegality. The revenue's appeal was rejected as devoid of merit, particularly as the assessee's provisional approval had been converted to final approval.

What were the facts?

The assessee society, engaged in education, filed its return claiming exemption. The AO made a substantial addition, but the CIT(A) granted full relief. The revenue appealed against the CIT(A)'s order.

What were the issues?

Whether the CIT(A) was justified in allowing exemption under Section 10(23C)(vi) when the assessee initially claimed exemption under Section 11, and whether the exemption was valid based on provisional registration.

Which sections of the Income-tax Act were involved?

Section 10(23C)(vi),Section 11,Section 143(1),Section 253(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri Sudhir Padliya, AR
For Respondent: Shri Ashish Porwal, Sr. DR, Shri Sudhir Padliya, AR
Hearing: 04.09.2024Pronounced: 09.09.2024

आदेश / O R D E R

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

1.

Feeling aggrieved by appeal-order dated 16.05.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of intimation of assessment dated 04.04.2023 passed by learned DDIT, CPC, Bangalore [“AO”] u/s 143(1) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2022-23, the revenue has filed this appeal on following grounds:

Page 1 of 6 Dy. CIT (E) vs. Indore Education & Service Society, Indore – AY 2022-23 “1. Whether on the facts and in the circumstances of the case, the Ld.

CIT(A) is justified in allowing the exemption u/s 10(23C)(vi) of the Act, when the assessee claimed exemption u/s 11 of the Act in its ITR and did not reveal the fact before the Ld. CIT(A).

2. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) is justified in deleting addition of Rs. 82,27,09,388/- made by the AO (CPC) and allowing the benefits of exemption u/s 10(23C)(vi) of the Income-tax Act, 1961, on the basis of provisional registration to the assessee especially when the assessee failed to apply for permanent approval for the same, even when the last date of application for permanent approval was on or before 30.09.2023?”

2.

The registry has informed that the revenue/appellant has filed present appeal after a delay of 139 days, therefore the appeal is time-barred. Ld. DR appearing for revenue submitted that the revenue has filed a condonation- application supported by an affidavit explaining the reason of delay. The condonation-application is scanned and re-produced below:

Page 2 of 6 Dy. CIT (E) vs. Indore Education & Service Society, Indore – AY 2022-23 Page 3 of 6

Dy. CIT (E) vs. Indore Education & Service Society, Indore – AY 2022-23 Accordingly, iterating the reasoning of delay mentioned in above application, Ld. DR submitted that there was a ‘sufficient cause’ due to which delay occurred and prayed to condone the delay. Ld. AR for assessee did not have any objection against submission and prayer of revenue. After consideration, we find that the reason of delay is sufficiently explained in the application.

Therefore, taking into account the provision of section 253(5) of the Act, we condone delay, admit appeal and proceed with hearing.

3.

The background facts leading to present appeal are such that the assessee-society, engaged in imparting education, filed return of AY 2022-23 declaring a total income of Rs. Nil. The AO processed assessee’s return u/s 143(1) after making adjustment in the form of disallowance/addition of Rs. 82,27,09,388/- and thus determining total income at Rs. 82,27,09,388/-.

Aggrieved, the assessee carried matter in first-appeal whereupon the CIT(A) granted full relief to assessee. Now, the revenue is aggrieved by CIT(A)’s order and has come in this appeal before us.

4.

At first, we extract the operative para of impugned order passed by CIT(A) reading as under:

Page 4 of 6 Dy. CIT (E) vs. Indore Education & Service Society, Indore – AY 2022-23 Page 5 of 6 Dy. CIT (E) vs. Indore Education & Service Society, Indore – AY 2022-23

5.

During hearing before us, Ld. DR for revenue could not contradict the above order of CIT(A) with reference to the grounds raised. On the other hand, Ld. AR for assessee has not only supported the order of CIT(A) with reference to the documents filed in Paper-Book but also submitted one more aspect that the provisional approval granted to assessee in terms of Clause (iv) of first proviso to Section 10(23C) for eligibility of exemption u/s 10(23C)(vi) by the PCIT vide Order dated 02.01.2022 for AY 2022-23 to 2024-25, on the basis of which the assessee claimed exemption u/s 10(23C) in present AY 2022-23, had already been converted into final approval by PCIT vide Order dated 10.05.2024 in terms of Clause (i) of first proviso to Section 10(23C), copy of Order is filed at Page 89-90 of Paper-Book. Faced with this situation, we do not find any error or illegality in the impugned order of CIT(A), the same is hereby upheld and the appeal of revenue is rejected being considered as devoid of any merit.

6.

Resultantly, this appeal is dismissed.

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