Section 10(23BBA) of the Income Tax Act
Income-tax Act, 2025: s.11
Section 10(23BBA) falls under section 10 of the Income-tax Act, 1961, which corresponds to section 11 (Incomes not included in total income) of the Income-tax Act, 2025.
Read section 11 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 10(23BBA) is CIT v. Shri Arbuda Mills Ltd. (231 ITR 50), cited in 61 of the 25 judgments on BharatTax that turn on this section.
Leading authorities on Section 10(23BBA)
The Commissioner's revisional powers under Section 263, as clarified by Explanation (c) of Section 263(1) (retrospectively inserted by the Finance Act, 1989), extend to and are deemed always to have extended to matters that were not considered and decided in an appeal. This means the CIT can revise an order even if it was appealed, provided the specific issue under revision was not part of the appeal proceedings.
The principle of res judicata or estoppel does not apply to income tax proceedings. Each assessment year's assessment is final only for that specific year and does not bind or govern assessments for subsequent years.
Only net income, not gross receipts, should be taxed, and this principle is applied even when an assessment order is passed under section 143(1) of the Income-tax Act, 1961, suggesting a need for verification of expenditure by the Assessing Officer.
An assessee is eligible for exemption under section 11 of the Income-tax Act, 1961, even if registration under section 12AA was granted after the assessment year, provided the denial of exemption was solely based on the absence of such registration.
