DCIT, C-2, (EXEMPTIONS), CHANDIGARH vs. M/S MODEL SCHOOL SOCIETY, ROHTAK

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the Revenue against the order dated 26.03.2018 of the Commissioner of Income Tax (Appeals), Rohtak [hereinafter referred to as CIT(A)].

ITA No.841/Chd/2018 M/s Model School Society, Rohtak 2

furnished Form No. 10B manually before the Assessing officer during the

assessment proceedings and further that the assessee could not upload the

form 10B on Departmental website within the due time. The Ld. CIT(A)

after relying upon the various case laws including the decision of the

Hon'ble Supreme Court in the case of case of ‘CIT Vs. Nagpur Hotel

Owners Association’ 247 ITR 201 (SC) and in ‘CIT Vs. M/s Shimla

Chandigarh Diocese Society (ITA No. 566 of 2008) has deleted the

disallowance observing as under:-

“4.2.6 In the instant case the assesses had furnished Form 10 before the AO during the assessment proceedings and thus the ratio of decisions of the cases discussed above is squarely applicable in this case. Thus, in view of the above discussion and the decision of Hon'ble Supreme court of India in the case of Nagpur Hotel Owners' Association (supra), and Hon'ble Punjab & Haryana High Court (jurisdictional High Court) in the case of CIT vs M/s Shimla Chandigarh Diocese Society (ITA No. 566 of 200B) and various other courts it is held that the assesses may be given relief as he was able to furnish the form 10 and 10B before completion of assessment proceedings by the Assessing officer and on merits no discrepancy has been found by the Assessing officer to deny him the benefit of exemption u/s 11/12 of the Act. The Assessing officer is directed to allow assessee’s claim of exemption u/s 11/12 of the Act and give benefit of accumulation as per section 11(2) of the Act and allow assessee’s claim of capital investment made”