2012 (1) TMI 246 - AT - Income Tax

Appeal allowed by ITAT Hyderabad on Revenue's claim under section 11 (A)

Asst. Director of Incometax (Exemptions) -III, Hyderabad Versus The Hyderabad Public School Society, Hyderabad

The Revenue's appeal against the CIT(A)'s order for the assessment year 2008-09, regarding the eligibility for claim under section 11 without approval ... - Issues involved: Appeal against CIT(A)'s order for assessment year 2008-09. Interpretation of eligibility for claim under section 11 without approval under sub-clause (vi) to section 10(23C). Power of CIT(A) to set aside issues to Assessing Officer.Interpretation of eligibility for claim under section 11: The Revenue appealed CIT(A)'s decision, arguing that the assessee was not eligible for claim under section 11 without approval under sub-clause (vi) to section 10(23C). The Revenue contended that the approval under sub-clause (vi) is distinct from registration u/s 12A of the Act. The Revenue highlighted that the Act explicitly deals with the issue, emphasizing the legislative intention. The Revenue also pointed out that a prior decision of the Apex Court was made before the introduction of sub-clause (vk) to section 10(23C) and that the approval under section 10(23C)(vi) is a prerequisite for exemption by any educational institution.Power of CIT(A) to set aside issues to Assessing Officer: The ITAT Hyderabad observed that the CIT(A) exceeded its power by directing the Assessing Officer to verify the collection of donations and fees. The ITAT held that the CIT(A) setting aside the issue to the Assessing Officer amounted to an impermissible action. Consequently, the ITAT canceled the CIT(A)'s order but remitted the issue back to the Assessing Officer to verify if the assessee collected any amount over and above the prescribed fees for student admissions, referencing a previous Tribunal decision.Conclusion: The appeal of the Revenue was allowed for statistical purposes, and the order was pronounced on 11th January 2012.