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| The Tax Publishers2020 TaxPub(DT) 1814 (Ind-Trib) INCOME TAX ACT, 1961
Section 10(23C)(vi)
There is no provision of law which shows that if assessee is registered under section 12AA, it cannot be granted claim under section 10(23C)(vi) or vice versa. Therefore, the CIT was not justified in rejecting application for approval under section 10(23C)(vi) merely on the basis that registration under section 12AA was already granted to the assessee.
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Exemption under section 10(23C)(vi) - Educational institution - Exemption denied alleging that assessee being already granted registration under section 12AA -
Assessee-society was registered under section 12AA for purpose of carrying charitable activities. It applied for approval under section 10(23C)(vi). CIT rejected the application for approval under section 10(23C)(vi) on the basis that registration under section 12AA was already granted to the assessee. Assessee contended that without pinpointing any defect in its objects, the CIT rejected the application filed for approval under section 10(23C)(vi) just on the basis that the registration under section 12AA was already granted. Thus, such rejection of the application was unlawful. Held: Assessee-society was having objects both in nature of performing charitable activities and also running for educational purpose without any purpose of earning profits. Further, claiming exemption for the profits earned from performing educational activities is provided in section 10(23C)(vi) and the benefit of claim of exemption for receipts/income from charitable activities is provided under section 11. For getting both the exemptions, assessee needs to be separately registered under section 10(23C)(vi) and under section 12AA. Both the provisions work independently and there is no provision of law which shows that if assessee is registered under section 12AA, it cannot be granted claim under section 10(23C)(vi) or vice versa. Thus, in instant case, the CIT should have focused on examining the activities undertaken by the assessee and the registration under section 10(23C)(vi) should not have been denied merely because the assessee enjoyed the registration under section 12AA. Hence, the issue of approval under section 10(23C)(vi) was remanded to the CIT for afresh examination.
REFERRED : M/s. Reva (Sunil) Education Society v. CIT [ITA No. 866/Ind/2018 Order, dated 21-11-2019] : 2019 TaxPub(DT) 7872 (Ind-Trib)
FAVOUR : Matter remanded
A.Y. :
IN THE ITAT, INDORE BENCH
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