2016 (10) TMI 1370 - AT - Income Tax

Exemption u/s 10(23C) (iiiab) - CIT(A) rejecting the claim of the assessee - HELD THAT - The assessee filed a letter written by the Principal Secretary, Government of Punjab, Deptt. of Technical Education Industrial Training, Chandigarh, to The Chief Commissioner of Income Tax, Aayakar Bhawan, Chandigarh Memo No. 01/02/2014-4TE2/821193/1 dated 17.8.2016, wherein it is claimed among other things that the revenue generated by the Institute belongs to the Consolidated Fund of the Government and the same has been permitted to be retained by the Institution for achieving the objectives of the society as yearly grant. This letter was not before the lower authorities, when the issue of grant of exemption u/s 10(23C)(iiiab) has been adjudicated. CIT(A) has to consider this letter, as the contents therein go to the root of the matter and take a fresh view on the matter. The claim made in this letter require verification. Thus, we set aside all these appeals to the file of the CIT(A) for de novo adjudication in accordance with law. Appeal allowed for statistical purposes.

Summary

Issues:
- Appeal against CIT(A) orders regarding exemption u/s 10(23C)(iiiab) of the Income-tax Act, 1961.

Analysis:
1. Issue of Exemption u/s 10(23C)(iiiab):
The appeals were filed against the CIT(A) orders regarding the claim of exemption u/s 10(23C)(iiiab). The key question was whether the Ld. CIT(A) was correct in rejecting the assessee's claim for exemption. During the proceedings, the assessee presented a crucial letter from the Principal Secretary, Government of Punjab, which highlighted that the revenue generated by the Institute belonged to the Consolidated Fund of the Government. This letter, not previously considered by the lower authorities, emphasized that the revenue was permitted to be retained by the Institution for achieving society's objectives as a yearly grant. The Tribunal opined that the CIT(A) should have considered this letter as it contained essential information impacting the case significantly. The Tribunal directed a fresh consideration by the CIT(A) to verify the claims made in the letter and make a decision in accordance with the law. Consequently, the appeals were allowed for statistical purposes, and the matter was remanded to the CIT(A) for a fresh adjudication.

2. Conclusion:
The judgment primarily focused on the issue of exemption u/s 10(23C)(iiiab) of the Income-tax Act, 1961. It highlighted the importance of the letter submitted by the assessee during the proceedings, emphasizing the need for the CIT(A) to consider its contents for a fair decision. The Tribunal's decision to remand the case for fresh adjudication underlines the significance of ensuring all relevant evidence is duly examined in tax matters to reach a just and lawful conclusion.