9911796707
TMI Blog2023 (9) TMI 1514X X X X Extracts X X X X X X X X Extracts X X X X ..... , as the assessment order cannot be said to be erroneous, the order passed by the learned PCIT under Section 263 of the Act is not sustainable and hence, quashed. Appeal of the assessee is allowed. - SHRI PRASHANT MAHARISHI, AM AND SHRI SANDEEP SINGH KARHAIL, JM For the Assessee : Shri Abdulkadir Jawadwala, AR For the Revenue : Shri S Srinivasu, CIT DR ORDER PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by NCDEX Investor (Client) Protection Fund Trust for A.Y. 2018-19, wherein the Revisionary order passed under Section 263 of the Income-tax Act, 1961 (the Act) dated 27th March, 2023, by the Commissioner of Income Tax (Exemption), Mumbai [the learned CIT ] holding that assessment order dated 4th March, 2021, passed under Section 143(3) read with section 143 (3A) and 143 (3B) of the Act is erroneous and prejudicial to the interest of the Revenue and therefore, the learned Assessing Officer was directed to conduct the assessment proceedings denovo. 02. Assessee is in appeal, raising following grounds of appeal:- The grounds/sub-grounds mentioned herein by the Appellant are independent and without prejudice to one another. 1. Ground 1 Validity of revisionary proceedings. 1.1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act would apply only to Income from property held under Trust and not otherwise. 3.4. That on the facts and the circumstances of the case and in law, the learned CIT(E) has erred in not appreciating the fact the income from statutory contributions received from commodity exchange and member thereof, cannot be deemed to be the income derived from property held under trust. The above grounds are without prejudice to each other. The Appellant craves leave to add, alter, amend or withdraw all or any of the Grounds of Appeal herein and to submit such statements, documents and papers as may be considered necessary either at or before the appeal hearing. 03. The brief facts of the case shows that assessee is a investor protection fund, being a public charitable trust registered under Section 12A of the Act having the main source of income as contribution from its members and also the other income such as interest etc. Assessee is notified u/s 10 (23EC) of the act for relevant exemption also. 04. Assessee filed its return of income for A.Y. 2018-19 on 28th September, 2018, declaring a total income of ₹17,60,920/-. In the return of income, so far as, contribution received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submitted that assessee has not claimed benefit on the same income under both the sections. He submitted that exemption under Section 10(23EC) of the Act is claimed with respect to contribution income and further benefit of section 11 and 12 of the Act is claimed with respect to other income, i.e. other than contribution income. He further stated that the co-ordinate Bench in assessee s own case reported in TS-557-ITAT-2023(Mum) has categorically held that only with effect from 1st April, 2024, amendment is made whereby the exception of Section 10(23EC) has been removed from section 11(7) of the Act. He therefore submitted that assessment years prior to April, 1st, 2024, the computation of the income and the assessment order are in accordance with the law. It was further stated that the learned Assessing Officer starting from A.Y. 2013-14, till A.Y. 2017-18 has also granted the benefit of exemption under Section 10(23EC) of the Act and Section 11 and 12 of the Act. These assessment orders are not disturbed under Section 263 of the Act. Thus, the assessment order passed by the learned Assessing Officer is not at all erroneous. 09. The learned Departmental Representative vehementl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an institution has been granted registration 37[under section 12AA or section 12AB] or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996)] and the said registration is in force for any previous year, then, nothing contained in section 10 [other than 38[clause (1), clause (23C) 38a[and clause (46)]] thereof] shall operate to exclude any income derived from the property held under trust from the total income of the person in receipt thereof for that previous year:] 39 [Provided that such registration shall become inoperative from the date on which the trust or institution is approved under clause (23C) of section 10 or is notified 39 a[under clause (46)] of the said section, as the case may be, or the date on which this proviso has come into force, whichever is later: Provided further that the trust or institution, whose registration has become inoperative under the first proviso, may apply to get its registration operative 40 [under section 12AA] 41 [or section 12AB] subject to the condition that on doing so, the approval under clause (23C) of section 10 or notification 41a[under clause (46)] of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
