Tribunal directs reassessment for exemption eligibility under Sections 11/12 based on CBDT Circular No. 01/2015.

The Tribunal allowed the appeals for statistical purposes, directing the Assessing Officer to reassess the eligibility for exemption under Sections 11/12 in light of CBDT Circular No. 01/2015. The Tribunal emphasized verifying the entitlement for exemption under Sections 11/12, considering registration under Section 12AA and the pending status of the assessment as of 20.04.2017. The same principles were applied to the assessment year 2016-17. Both appeals for A.Y. 2015-16 and 2016-17 were allowed for statistical purposes, with directions for fresh assessment.

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Issues Involved:
1. Eligibility for deduction under Section 11 of the Income-tax Act, 1961.
2. Applicability of registration under Section 12AA for prior assessment years.
3. Validity of rejection of exemption under Section 10(23C)(iiiad).

Summary:

Issue 1: Eligibility for Deduction under Section 11
The assessee, an educational society, claimed a deduction under Section 11 of the Income-tax Act, 1961, which was denied by the Assessing Officer (A.O) on the grounds that the society was not registered under Section 12AA for the assessment year 2015-16. The A.O added a surplus amount of Rs. 11,47,592/- to the returned income. The CIT(A) upheld this view, emphasizing that the society was not registered under Section 12A or Section 10(23C)(vi) for the relevant year.

Issue 2: Applicability of Registration under Section 12AA for Prior Assessment Years
The assessee argued that the registration under Section 12AA granted on 20.04.2017 should apply retrospectively to the assessment year 2015-16, as the assessment was pending at the time of registration. The assessee relied on CBDT Circular No. 01/2015, which allows retrospective application of Sections 11 and 12 benefits if the assessment is pending on the date of registration. The Tribunal found that the assessment for A.Y. 2015-16 was indeed pending on 20.04.2017 and thus, the assessee was entitled to the benefits under Sections 11/12 as per the CBDT Circular.

Issue 3: Validity of Rejection of Exemption under Section 10(23C)(iiiad)
The A.O rejected the exemption claim under Section 10(23C)(iiiad) because the gross receipts exceeded the threshold limit. The Tribunal did not specifically address this issue in detail, focusing instead on the applicability of Section 11/12 benefits.

Conclusion:
The Tribunal allowed the appeals for statistical purposes, directing the A.O to reassess the eligibility for exemption under Sections 11/12 in light of the CBDT Circular No. 01/2015. The Tribunal emphasized that the A.O must verify the entitlement for exemption under Sections 11/12, considering the registration under Section 12AA and the pending status of the assessment as of 20.04.2017. The same principles were applied to the assessment year 2016-17.

Order:
Both appeals (ITA No. 262/RPR/2022 for A.Y. 2015-16 and ITA No. 263/RPR/2022 for A.Y. 2016-17) were allowed for statistical purposes, with directions for fresh assessment.

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