INCOME TAX ACT, 1961

Section 10(23C)

Exemption under section 10(23C) - Allowability - Assessee not having independent Memorandum of Association, Bye laws, etc., whether fatal for claiming exemption -

Revenue was aggrieved by order of Tribunal allowing appeal of assessee, higher secondary school, which was filed against the order of Chief CIT and directing him to grant exemption to assessee-school under section 10(23C)(vi). Allegation of revenue was that assessee was not independently registered. Held: Tribunal rightly discussed the relevant provisions of the Act and gave finding that the assessee educational institution is undoubtedly an 'Institution' covered by the provisions of section 10(23C)(vi) and therefore, as an AOP, it was entitled to exemption irrespective of the fact whether it had separate registration under other law as an Institution or Society or not. The requirement of assessee being a registered Body or juristic person is not there in section 10(23C). The definition of 'Person' who is entitled to exemption under section 10(23C)(vi) is clear enough and it specifically covers Association of Persons (AOP), which need not be a registered Body. The submission made on behalf of the revenue that unless assessee under section 10(23C) was independently registered, revenue may not have control over it, was fallacious, since assessee was admittedly filing its returns of income as an AOP. Unless the finding of facts were given on the basis of evidence that assessee did not meet the parameters of section 10(23C), exemption claimed by assessee could not be denied on the ground that it did not have independent Memorandum of Association, Bye laws, etc.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-2015

SUBSCRIBE FOR FULL CONTENT