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TMI Blog2020 (11) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... e for assessment years 2010-11 and 2012-13 need to go back to the file of the learned Assessing Officer for re-consideration of the issue after the outcome of the proceedings before the Chief Commissioner of Income-tax, Coimbatore regarding eligibility of the assessee for exemption u/s.10 (23C) of the Act. Hence, we set aside the impugned orders and remit both the appeals back to the file of the Assessing Officer and direct him to redo the assessments in accordance with the law. - I.T.A.Nos.1930 & 1931/Chny/2019 (Assessment Years: 2010-11 & 2012-13) - - - Dated:- 29-9-2020 - SHRI V.DURGA RAO, JUDICIAL MEMBER AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER Appellant by : Mr. N.Arunraj,C.A for Mr. S.Sridhar, Advocate Respondent by : M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption in such circumstances was wrongly rejected in view of the narrow and wrong interpretation of the related provisions of the Act in the first round of litigation. 4. The CIT (Appeals) erred in sustaining the order of the Assessing Officer passed in consequence to the order of the Appellate Tribunal in the first round and ought to have appreciated that the directions issued by the Appellate Tribunal in their order were narrow while not properly implemented, thereby vitiating the computation of taxable total income on various grounds. 5. The CIT (Appeals) failed to appreciate that the taxation of the income from PKD Matric Higher Secondary School and PKD School Hostel upon rejecting the claim for tax exemption u/s 10(23C)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Chief Commissioner of Income Tax, Coimbatore, because the assessee trust was not registered under section 12A of the Act. Further, while rejecting the claim of exemption, the learned Assessing Officer held that since the total receipts of the trust exceeding Rs. one crore, in order to claim the benefit of exemption under section 10(23C) of the Act, the assessee trust ought to have obtained approval from the prescribed authority. Since, the assessee trust failed to do so, the exemption claimed under section 10(23C) of the Act has been denied and income was brought to tax. Aggrieved by the assessment order, assessee has filed an appeal before the learned Commissioner of Income Tax (Appeals), Coimbatore. The learned CIT(A) vide order dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income of PKD Matric Higher Secondary School only available for taxation is incorrect, because hostel of a school cannot be considered as a separate entity for the purpose of exemption for the reason that the same set of students are beneficiaries of the school and the hostel attached to it as part of institution which is offering education, therefore rejected the explanation furnished by the assessee and assessed the income of PKD Matric Higher Secondary School and PKD School Hostel as one institution. Since, the gross receipts of the institution is more than Rs. One crore and also the assessee was not having the benefit of registration u/s.10(23C) of the Act, denied exemption claimed and assessed the total income as an AOP assessable a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer, because assessment orders are based upon the rejection of prayer for exemption u/s.10(23C). Therefore, he requested that the appeals may be remitted back to the file of the Assessing Officer by setting aside the impugned orders for fresh consideration in the light of observations of the Hon ble Jurisdictional High Court . 6. The learned DR, on the other hand, fairly accepted that the matter needs to be go back to the file of the Assessing Officer in the light of the observations of the Hon ble Jurisdictional High Court , where substantial issue of denial of exemption u/s.10(23C) had been restored back to the file of the Chief Commissioner of Income Tax for reconsideration and accordingly the consequential assessment orders framed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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