Tribunal upholds exemption under section 11 for 2005-06 and 2006-07, remands 2009-10 appeal for fresh consideration.

The Tribunal dismissed the Revenue's appeals for the assessment years 2005-06 and 2006-07, upholding the exemption under section 11 as allowed by the CIT(A). However, for the assessment year 2009-10, the appeal was allowed for statistical purposes. The matter was remanded to the CIT(A) for fresh consideration in light of the newly inserted proviso to section 2(15) regarding the eligibility for exemption under section 11.

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Issues Involved:
1. Validity of revised returns filed under section 139(5) for assessment years 2005-06 and 2006-07.
2. Eligibility for exemption under section 11 of the Income Tax Act for assessment years 2005-06, 2006-07, and 2009-10.
3. Impact of the proviso to section 2(15) on the eligibility for exemption under section 11 for the assessment year 2009-10.

Issue-wise Detailed Analysis:

1. Validity of Revised Returns Filed Under Section 139(5):
The Revenue argued that the revised returns filed under section 139(5) for the assessment years 2005-06 and 2006-07 could not be considered valid as the assessee did not claim exemption in the original returns filed under section 139(1). Additionally, the audit under section 12(1)(b) was not conducted within the stipulated time, nor was the audit report filed timely. The Revenue relied on the Supreme Court's decision in Goetze (India) Ltd. Vs. CIT and CIT Vs. Sun Engineering Works P. Ltd. to support their position. However, the Tribunal noted that the assessee was granted registration under section 12AA with retrospective effect from the assessment year 2003-04, and thus, the exemption claimed in the revised returns should be allowed. The Tribunal upheld the CIT(A)'s decision, which had followed the Tribunal's earlier ruling in the assessee's own case for the assessment years 2003-04 and 2004-05.

2. Eligibility for Exemption Under Section 11 for Assessment Years 2005-06 and 2006-07:
The Tribunal reviewed the orders of the lower authorities and the decision in the assessee's own case for the assessment years 2003-04 and 2004-05. It was observed that the registration under section 12AA was granted retrospectively, and thus, the exemption under sections 11 and 12 should be allowed even if claimed in the revised return. The Tribunal found no error in the CIT(A)'s order, which directed the Assessing Officer to allow the exemption, as the necessary details were available during the reassessment. Consequently, the appeals of the Revenue for these assessment years were dismissed.

3. Impact of Proviso to Section 2(15) on Eligibility for Exemption Under Section 11 for Assessment Year 2009-10:
For the assessment year 2009-10, the Revenue contended that the assessee's gross receipts exceeded Rs. 10,00,000 and that its activities fell under "general public utility," thus losing its character as a charitable organization due to the proviso to section 2(15). The Tribunal noted that the CIT(A) had not examined whether the assessee's activities fell within the ambit of the amended provisions of section 2(15). The Tribunal found that the CIT(A) had mistakenly followed the orders for the earlier assessment years without considering the impact of the newly inserted proviso. Therefore, the Tribunal set aside the CIT(A)'s order for the assessment year 2009-10 and restored the matter for fresh consideration, directing the CIT(A) to examine the applicability of the proviso to section 2(15) and the eligibility for exemption under section 11.

Conclusion:
The appeals of the Revenue for the assessment years 2005-06 and 2006-07 were dismissed, sustaining the CIT(A)'s order allowing exemption under section 11. However, for the assessment year 2009-10, the appeal was allowed for statistical purposes, and the matter was remanded to the CIT(A) for fresh adjudication in light of the amended provisions of section 2(15). The order was pronounced in the open court on 24.10.2014.

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