The Tax Publishers2020 TaxPub(DT) 4302 (AP-HC) : (2021) 431 ITR 0217 : (2021) 276 TAXMAN 0018

INCOME TAX ACT, 1961

Section 10(23C)

Where assessee filed application for exemption under section 10(23C)(vi), dated 26-3-2019 before the completion of the financial year 2018-19, and Form 56D was filed, mentioning it as assessment year 2018-19, but the information filed on the basis of estimate pertained to the financial year 2018-19 only in order to consider the exemption for the assessment year 2019-20 only basing upon the representation of assessee, competent authority ought to have considered the above said application of assessee, on merits by treating it for the financial year 2018-19 and the assessment year 2019-20 only, instead of rejecting it as barred by time.

Exemption under section 10(23C) - Allowability - Application for exemption rejected on allegation that it was filed beyond permissible time limit -

Assessee was an educational society running an educational college for Intermediate, Degree and Post-Graduation courses for women. It filed an application, dated 26-3-2019 seeking grant of exemption for the assessment year 2019-20, as the gross receipts of the petitioner exceeded Rs. 1 Crore in the financial year 2018-19 under section 10(23C)(vi). However, competent authority rejected the application of assessee for grant of exemption on the ground that the application was filed beyond the permissible time limit. Case of assessee was that as application dated 26-3-2019 was filed before the completion of the financial year 2018-19, Form 56D filed, mentioned it as assessment year 2018-19, but the information filed on the basis of estimated basis pertained to the financial year 2018-19 only in order to consider the exemption for the assessment year 2019-20 only basing upon the representation of assessee, dated 26-3-2019. Held: Mere wrong quotation of law or non-mentioning of the relevant provision of law or a typographical mistake does not disentitle a person/individual/an institution from any relief, if otherwise he or she/individual/institution is entitled to. Competent authority could not desist from exercising its power by mis-reading on the face of it without going into the merits of the application of assessee and the documents furnished along with it in spite of giving personal opportunity of hearing for assessee's representative to represent his case. Instead of suggesting to file a fresh application, competent authority ought to have considered the above said application of assessee, dated 26-3-2019 on merits by treating it for the financial year 2018-19 and the assessment year 2019-20 only instead of rejecting it as barred by time.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2019-20



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