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TMI Blog2024 (7) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... a charitable society and hence the conditions prescribed u/s. 13 of the Act are not applicable to it as per the CBDT circular No.557, dated 19.03.1990, once the society is notified u/s. 10(23C) of the Act. Similarly, the Assessing Officer cannot make any disallowance u/s.11, as the society is an organization having notified u/s. 10(23C)(iv) of the Act. Considering the entire facts and circumstances of the case, we are of the view that, there is no infirmity in the order of CIT(A) in allowing the appeal of the assessee and therefore, there is no need for us to interfere and hence, we are inclined to dismiss the appeal of the Revenue. - SHRI MAHAVIR SINGH, HON BLE VICE PRESIDENT AND SHRI S. R. RAGHUNATHA, HON BLE ACCOUNTANT MEMBER For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 975. The Assessee filed the return of income on 26.09.2014 admitting NIL income after claiming exemption u/s.11 of the Act. The Gross receipt of the Society was Rs. 3,85,17,209/- and it had claimed Rs. 2,96,17,962/- and Rs. 26,78,512/- as revenue and capital expenditure respectively. The Assessee had a short fall of application of fund of Rs. 1,05,99,352/- during the year and it exercised an option as per clause (2) of explanation to section 11 to accumulate the same. 4. The case was selected for scrutiny assessment and issued statutory notices to the assessee and concluded the assessment u/s.143(3) of the Act, by the Assessing officer on 29.12.2016, by denying the exemption u/s.11 of the Act on account of violation of sec. 13(1)(c) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould only affect the case of an assessee within the meaning of sections 11 to 13 and could not be imported to deny exemption under section 10(23C). This position of law is based on CBDT Circular No. 557, dated 19-03-1990 which held that provisions of section 11 will not be applied and provisions of sections 11 and 13 relating to 'interested person' will not be applicable while examining the claim for exemption under section 10(23C)(iv). This was reiterated by IT AT Lucknow in the case of Virendra Singh Memorial Shiksha Samiti [2010, 35 SOT 1]. 4. In the case of Seethakathi Trust [2007] 295 ITR 520 (Madras), the Assessing Officer denied the exemption under section 10(22) of the Act and also denied the benefits of sections 11 and 12 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot become basis for denying exemption. As a result, the appeal is fully allowed. Aggrieved by the impugned order of the Ld.CIT(A), the revenue is before us. 6. The Ld.DR assailed the impugned action of the Ld.CIT(A) and prayed for quashing the order and restore the order of the Assessing Officer, as the appeal allowed is bad in law. 7. Per contra, the Ld. AR of the assessee took us through the paper book consisting of 1 to 74 pages filed and written submission made before the Ld.CIT(A), wherein the assessee stated that, it is a society notified u/s. 10(23C)(iv) vide Notfn. No. S.O.3455, dated 30.06.1977 and also registered u/s. 12A(a) of the Act vide order No. 212(205)/73, dated 21.12.1975. Therefore, the provisions of section 11 to 13 rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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