The Tax Publishers2020 TaxPub(DT) 4740 (Chen-Trib)

INCOME TAX ACT, 1961

Section 11

Where assessee was carrying on its objects through establishment of educational institutions including an engineering college and claimed exemption under section 11, which was denied on allegation that assessee filed Form No. 10 setting apart accumulation of income beyond stipulated date, considering fact that assessee's claim of exemption under section 11 needed to be examined from the assessment year 2006-07 onwards, the appeals filed by the assessee for both the assessment years were restored to the file of AO.

Charitable trust - Exemption under section 11 - Denial of exemption on allegation that assessee filed Form No. 10 setting apart accumulation of income beyond stipulated date -

Assessee trust was carrying on its objects through establishment of educational institutions including an engineering college, polytechnic college, arts and science college, a matriculation school and CBSE school. Trust was registered under section 10(23C)(vi). Revenue rejected exemption claimed under section 11 on allegation that assessee filed Form No. 10 setting apart accumulation of income beyond stipulated date. Held: An identical issue was considered by Tribunal for assessment years 2006-07 to 2010-11, [ITA Nos. 590, 591, 592, 593 & 594/Chny/2015, dt. 4-3-2019]. After considering relevant facts of case, Tribunal restored the matter to the file of AO to reconsider the issue raised by assessee regarding claim of exemption under section 11. Therefore, considering the facts and circumstances and also the fact that assessee's claim of exemption under section 11 needed to be examined from the assessment year 2006-07 onwards, the appeals filed by the assessee for both the assessment years were restored to the file of the AO to reconsider the issue of exemption claimed under section 11 in the light of Form No. 10B filed by the assessee for both the assessment years. Also, it was taken note that writ petition filed by the assessee before High Court challenging cancellation of registration withdrawn under section 10(23C)(vi) and outcome of the writ petition before High Court.

REFERRED : CIT -III, Pune v. Rajasthan and Gujarati Charitable Foundation Poona CA No. 7186 of 2014 : 2017 TaxPub(DT) 5384 (SC), GKN Driveshafts (India) Ltd. v. ITO & Ors. (2003) 259 ITR 19 (SC) : 2003 TaxPub(DT) 0734 (SC), CIT v. Nagpur Hotel Owners Association (2001) 247 ITR 201 (SC) : 2001 TaxPub(DT) 0943 (SC), Director of Income Tax, Exemption-III, Chennai v. Medical Trust of the Seventh Day Adventists 2017 TaxPub(DT) 3891 (Mad-HC), CIT v. Mayur Foundation. (2005) 274 ITR 562 (Guj) : 2005 TaxPub(DT) 1142 (Guj-HC), Sriram Educational Trust v. Dy. Director of Income Tax (Exemptions) -II, Chennai [ITA Nos. 590, 591, 592, 593 & 594/Chny/2015, dt. 4-3-2019].

FAVOUR : Matter remanded.

A.Y. : 2011-12 & 2012-13



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