9911796707
TMI Blog2024 (10) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... was extended up to 30.10.2019 admittedly the same were filed on 23.10.2019, therefore, the return of income as well as audit report in Form 10B was filed within the prescribed time allowed by the CBDT and, therefore, the delay which was not there, cannot be the basis of denial of exemption u/s 11 as mentioned by the ld. Addl./JCIT(A)-5, Chennai. The acknowledgement of income tax return and Form 10B audit report dated 23.10.2019 was produced before us. We therefore find force in the argument of assessee that the ld. Addl./JCIT(A)-5, Chennai has erred in holding that the return of income and audit report was filed belatedly. Since the income tax return and audit report in Form 10B was filed within the prescribed time, ld. Addl./JCIT(A)-5, Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unning an educational institution and for the AY 2019- 20, it had returned an income of Rs. Nil after claim of exemption u/s. 11 through the ITR filed on 23/10/2019. The CPC processed the ITR u/s. 143(1) and arrived at a total income of Rs. 8,20,35,646/-. Aggrieved by the addition to total income, the appellant made its grounds of appeal and statement of facts. Amongst other grounds, it had raised an alternate ground that even in case of denial of exemption u/s. 11, since the appellant is running an educational institution, which is funded in excess of 50% of the gross receipts by way of Government grants, the claim of exemption u/s. 10(23C)(iiiab) has to be granted. 4.2 The facts of the case were carefully considered on in order to ascerta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not apply to clause (1) clause (23C) and therefore the is impediment under the statute to entertain this alternate claim of exemption u/s. 10(23C)(iiiad) when the conditions laid down under that section are fully complied with. Even the bar introduced through the first proviso to S.11(7) introduced by Finance Act, 2020 is w.e.f 01/06/2020 applies to Institutions approved u/s. 10(23C) by a competent authority only, being 10(23C)(iv), 10(23C)(v), 10(23C)(vi) 10(23C)(via) and does not therefore apply to Institutions covered under 10(23C)(iiiab), 10(23C)(iiiac), 10(23C)(iiiad) 10(23C)(iiiae) as these 4 types of institutions are not approved, but are automatically eligible by virtue of their activity. Therefore, under the circumstances, the JAO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down under sections 12A(1)(b) and 12A(1)(ba). The appellant has fully complied with these conditions, and the exemption under section 11 should not have been denied. The corresponding grounds of the appellant should be allowed, and the denial of exemption should be reversed. 4. The appellant contends that the CPC's intimation under section 143(1) dated 09.06.2020, which determined the total income at Rs. 8,20,35,646 and raised a demand of Rs. 3,56,30,312, is incorrect and bad in law. The appellant's income is fully exempt under section 10(23C)(iiiab) and section 11, and the intimation by CPC should be quashed. 5. The CIT(A) erred in overlooking that the Assessing Officer (AO) had incorrectly mentioned that the appellant did not prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for exemption u/s 11 of the IT Act. It has also complied the conditions laid down u/s 12 of the IT Act and the assessee, being an educational institution, had returned an income of Rs. Nil after claiming exemption u/s 11 of the IT Act. The assessee has already mentioned the details of grant of registration u/s 12 of the IT Act in the return of income. The certificate in this regard was also produced before the bench. Ld. AR also submitted that an alternative ground regarding the deduction u/s 10(23C)(iiiab) was also made before the ld. Addl./JCIT(A)-5, Chennai and it was prayed before the ld. Addl./JCIT(A)-5, Chennai that both the exemptions are available to the assessee. But, the ld. Addl./JCIT(A)-5, Chennai by relying on wrong fact of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udit report for asstt. year 2019-20, which was 30.09.2019, was extended up to 30.10.2019 admittedly the same were filed on 23.10.2019, therefore, the return of income as well as audit report in Form 10B was filed within the prescribed time allowed by the CBDT and, therefore, the delay which was not there, cannot be the basis of denial of exemption u/s 11 as mentioned by the ld. Addl./JCIT(A)-5, Chennai. The acknowledgement of income tax return and Form 10B audit report dated 23.10.2019 was produced before us. We therefore find force in the argument of the ld. Counsel for the assessee that the ld. Addl./JCIT(A)-5, Chennai has erred in holding that the return of income and audit report was filed belatedly. Since the income tax return and audi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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