9911796707
TMI Blog2025 (3) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Case files perused. 2. The Revenue pleads the following substantive grounds in the instant appeal : 1. On facts and circumstance of the case, the Ld. Commissioner of Income Tax (Appeals) [hereinafter Ld.CIT(A) in short] erred in interpreting Section 10(23C)(vi) of the Income Tax Act, 1961, and the conditions stipulated by the Chief Commissioner of Income Tax in such a manner as to allow the appellant's exemption without proper scrutiny of its adherence to the conditions particularly related to non-discriminatory admission based on merit, thereby conflicting with the principle of "Ignorantia Juris Non Excusat". 2. On facts and circumstance of the case, the Ld. CIT(A) erred in law by failing to appropriately consider the AO's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine of "Stare Decisis" and the procedure prescribed under Rule 46A of the Income Tax Rules, 1962. 6. The appellant craves leave to add, alter, amend or omit any or all the grounds of appeal." 3. Both the learned representatives next invited our attention to the CIT(A)'s detailed discussion accepting the assessee's lower appeal as under : 4.1. Ground Nos.1 to 5:- All these ground are interrelated and pertain to disallowance of claim of exemption u/s 10(23C) (vi) and an addition of Rs. 17,42,65,930/- as income of the appellant by the Ld. Assessing officer. The assessing officer in his assessment order has highlighted that the assessee has not fulfilled the conditions prescribed by Ld. Chief Commissioner of Income Tax, Pune. This ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of these observations the AO was not correct in rescinding the exemption is 10(23C)(vi) granting to the assessee. The addition of Rs. 17,42,65,830/- is hereby deleted. Consequently, these grounds of appeal no. 1 to 5 are hereby allowed. 4.2. Ground No.6:- This ground pertains to disallowance to Rs. 8,59,452/- by the Ld. Assessing Officer w.r.t. medical insurance for the medical director of the school. At the outset, the appellant has contended that he was not given proper opportunity to put forth his submission and no show-cause notice was given to him to this effect. The grievance of the assessee is redressed since all the contentions are being considered herewith and he d he is being provided an opportunity to contest the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 28.03.2016 had rightly held the assessee to have been carrying out commercial activity(ies) u/sec.2(15) 1st proviso of the Act under the last lines of "general public utility" and therefore, not entitled for the impugned exemption. He inter alia, takes us to the impugned assessment discussion disallowing/adding assessee's application, medical insurance and depreciation claim(s) to this effect in very terms. 5. Mr. Patel accordingly submits in light of the Revenue's fifth substantive ground at this stage that the CIT(A)'s above extracted findings under challenge had in fact admitted assessee's additional/fresh evidence without affording any opportunity; much less an adequate one; to the Assessing Officer's and therefore, the matters r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leads very much a valid fundamental point that till the time an Assessing Officer does not act as per the foregoing statutory stipulation intimating the prescribed authority about the contravention of the registration/ approval u/sec.10(23C); no assessment order regarding total income or loss; as the case may be could be made. He cites case law [2014] 42 taxmann.com 353 (Kar.) CIT vs. People's Education Society deciding the very issue against the department to this effect as under : "7. From the aforesaid facts, it is not in dispute that the assessee is a charitable society running an educational institution. The DIT (Exemption) registered the assessee society under Section 12AA of the Act on 5.5.2003. By an order dated 12.5.2004, the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 unless- (i) the Assessing Officer has intimated the Central Government or the prescribed authority the contravention of the provisions of clause (21) or clause (228) or clause (234) or clause (238) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) or clause (23C) of section 10 as the case may be, by such scientific research association, news agency, association or institution or fund or trust or university or other educational institution or any hospital or other medical institution, where in his view such contravention has taken place, and (ii) the approval granted to such scientific research association or other association or institution or university or other educational institution or hospital or other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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