9911796707
TMI Blog2021 (5) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... ddl. CIT ORDER The present appeal has been filed by the assessee wherein the correctness of the order dated 03.10.2019 of CI T(A)-II Jalandhar pertaining to 2016-17 assessment year is assailed on the following grounds: 1. That the CIT(A) was not justified in upholding the action of the AO for denying the exemption of ₹ 4702618/- claimed by the assessee u/s 11 of the Income Tax Act, 1961. 2. That both AO CIT(A) failed to appreciate that the exemption u/s 10(23c)(vi) was granted by the IT AT vide their order dated 22.02.2017 effective from Asst. Year 2015-16. Therefore the CIT(A) erred is not granting exemption on the pretext of filling of Form 10BB on 06.06.2017 during the pendency of assessment proceedings. 3. That both CIT(A) AO failed to appreciate that filing of the Audit Report in Form 103B is directory and not mandatory and can be filed at the stage of assessment. 4. That CIT(A) wrongly ignored the Circular No. 10/2019 dated 22.05.2019 . wherein the CBDT had granted blanket permission of condonation of delay in filing Form 10BB pertaining to Asst. Year 2016-17 which was binding on both the authorities. 5. That the order of CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 021 is extracted hereunder for ready reference : 5. On the next date of hearing, ld. AR again relied upon the written submissions extracted in the impugned order. Inviting attention to the order of the I TAT in ITA 1397/CHD/2018 dated 09.05.2018 and the joint order dated 22.02.2017 in the case of the assessee being in ITA 528/ASR/2016 in consolidated order in I TA 526/ASR/2016 in the case of Kanya Maha Vidyalaya and others including the assessee. The year under consideration, it was reiterated is 2016-17 assessment year. Copy of the order of the CIT(A)-2 Jalandhar for 2015-16 assessment year dated 27.08.2018 was relied upon before the CI T(A). This order had been upheld by the ITA T wherein reference has also been made to the decision of the CIT(A) dated 14.06.2017 in 2014-15 assessment year. Copy of this is available at pages 29 to 35 of the Paper Book which has been referred to by the I TAT in the circumstances it was his submission that the assessee's appeal was allowable . 6. The ld. Sr.DR relying upon the order submitted that the approval u/s 10(23C)(vi) to the assessee was granted on 22.02.2017 and since form 10BB had not been filed in accordance with law and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Year 2014- 15 and 2015-16 has already been allowed by your goodself vide order dated, 10.08.2016 Appeal No. 2/10296/16-17 and 27.08.2018 Appeal No 2/10574/17-18 CIT(A) Jal. In this regard it is submitted that assessee school is affiliated to CBSE and it may be stated that it is not government aided school but purely private school imparting education to the students from Nursery to +2 classes. The salaries paid to the staff are neither governed by CBSE nor governed by Government of Punjab since it is not aided school of government. It is totally the management to decide the salary structure payable to staff It is not understood how A.O had presumed the school compromises with the quality of education and what are the measures under which you are making false allegations that quality of education is compromised and there is tendency of earning high profits. The assessee school is charging fee as per the decision made by management under the various heads which are charged by all education institutions. The school is duly eligible to charge fee from students and it is not free school. It is not the power of the A.O to intervene into the matters o f charging of fees from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has been granted exemption u/s 10(23C)(vi) vide order of Hon'ble ITAT on 22.02.2017, therefore, the institute is running for the purposes of education i.e. for charitable purposes. It is observed that form 10BB was filed by the assessee on 06.06.2017 as per CBDT Circular 10/2019, the assessee should have filed form 10BB by 17.10.2016. i.e. date of filing of return of income for A.Y. 2016-17. The assessee has not brought on record whether any permission was obtained from the CIT(Exemption) for late filing pf Form 10BB. Since, the assessee has failed to file audit report in form 10BB within the stipulated time, therefore, the assessment made by the assessing officer is upheld. Grounds of appeal of the assessee are dismissed. 8.2 On a perusal of the same, it is seen that there is no discussion as to why the order of the CIT(A) passed in the immediately preceding assessment year which has been upheld by the Co-ordinate Bench was not considered while deciding the issue. A perusal of the record shows that in ITA 1397/CHD/2018, the Co- ordinate Bench proceeded to decide the issue in the following manner : 2. The assessee school is engaged in the activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her registered u/s 10(23c)(vi) nor it exists solely for the purpose of education and exists for other purposes i.e for the motive of profits . Copies of grounds of appeal are enclosed for your ready reference. The appeal of the department was dismissed by the ITAT vide order dated 9-5-19 placed on paper book page no 45 46.There is a specific finding that there are no changes in the facts circumstances as compared to A.Y 14-15. In the A.Y 16-17 i.e the impugned year the A.O despite the settled position by the CIT (A) and the ITAT again disallowed the exemption in Para 11 of the order on 2 grounds that assessee failed to prove that it was existing wholly solely for education not for profit and secondly on the ground that assessee did not have approval u/s 10(23c)(vi) of the Act during F.Y 15-16. Further the A.O gave presumptive and unnecessary findings in the Para 8 9 that the assessee had been paying low salaries to the teachers and the quality of education is low. The assessee filed an appeal before the CIT (A) and also filed written submissions which have been reproduced by her in Para 3 and entire explanation was given to CIT(A). Further the assessee also filed the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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