Appeals Allowed for Tax Exemption Claim under Income Tax Act

The appeals filed by the Commissioner of Income Tax (Appeals)-9, Ahmedabad for multiple Assessment Years under section 143(3) of the Income Tax Act, 1961 were allowed. The Co-ordinate Bench, following previous judgments and decisions of the Jurisdictional High Court, granted the claim of exemption u/s 11 of the Act. As a result, the disallowed exemption and additional income of Rs. 2,38,37,730 were deleted.

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Issues involved:
Appeals filed against orders dated 28.04.2017 & 11.08.2017 by Commissioner of Income Tax (Appeals)-9, Ahmedabad for Assessment Years 2012-13, 2013-14, 2009-10, 2011-12 & 2014-15 under section 143(3) of the Income Tax Act, 1961.

Analysis:

Issue 1: Determination of total income after disallowing the claim u/s 11(1) and 11(1)(a) of the Act for A.Y. 2012-13.

Analysis: The Learned AO determined the total income at Rs. 2,38,37,730 after disallowing the claim u/s 11(1) and 11(1)(a) of the Act for A.Y. 2012-13.

Issue 2: Claim of exemption u/s 11 and Section 11(1)(a) of the Act denied.

Analysis: The assessee claimed exemption u/s 11 and Section 11(1)(a) of the Act, arguing compliance with eligibility criteria for registration u/s 12A of the Act. However, the claim was rejected by the Learned AO, leading to an addition of Rs. 2,38,37,730 in the assessee's income.

Issue 3: Dismissal of appeal by Learned CIT(A) based on applicability of proviso to Section 2(15) of the Act.

Analysis: The Learned CIT(A) dismissed the appeal, stating that the assessee is covered by the proviso to Section 2(15) of the Act, making Section 13(8) applicable. Consequently, the claim of benefit under Section 11 and 12 of the Act was rejected.

Issue 4: Interpretation of judgments of Jurisdictional High Court in similar cases.

Analysis: The Learned Counsel relied on judgments of Jurisdictional High Court in similar cases where the claim of the assessee was allowed. The Co-ordinate Bench's order in a previous case for A.Y. 2010-11 was also cited to support the claim.

Issue 5: Decision on the applicability of exemption u/s 11 of the Act.

Analysis: The Co-ordinate Bench found that the issue was covered by previous judgments and allowed the claim of the assessee towards exemption u/s 11 of the Act, deleting the disallowance of exemption and addition of Rs. 2,38,37,730.

In conclusion, the appeals were allowed based on the precedent set by the Co-ordinate Bench and the judgments of the Jurisdictional High Court, leading to the deletion of the disallowed exemption and additional income.

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