Appeal for AY 2012-13 allowed; Tribunal rules section 263 beyond jurisdiction. AY 2015-16, 2016-17 cases remitted.

The Tribunal allowed the appeal for AY 2012-13, ruling that the implementation of section 263 was beyond jurisdiction as Rule 2BBB was not applicable, thus upholding the exemption under section 10(23C)(vi). For AY 2015-16, the Tribunal set aside the order of the ld. CIT(A) and remitted the case for fresh consideration, as the appeal was rejected without merit assessment. For AY 2016-17, the Tribunal remitted the matter back to the ld. CIT(A) for further adjudication, considering a CBDT circular extending the time for filing the Audit Report in Form No. 10BB.

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Issues involved:
The judgement involves appeals filed for three different assessment years against orders passed by the ld. Commissioner of Income-tax (Exemptions) and ld. Commissioner of Income-tax (Appeals)-2 under sections 263 & 250(6) of the Income Tax Act, 1961 respectively.

A.Y. 2012-13:
The assessee, an educational institute, was granted exemption u/s. 10(23C)(vi) for AY 2012-13. The ld. CIT(E) challenged this exemption, claiming the assessee was not eligible due to grant received. The assessee argued Rule 2BBB was not applicable for that year, citing relevant case law. The Tribunal held that the implementation of section 263 was beyond jurisdiction, as Rule 2BBB was not applicable, thus allowing the appeal.

A.Y. 2015-16:
The assessee filed two returns and appealed against two intimations under section 143(1). The ld. CIT(A) rejected the appeal without considering the merits. The Tribunal set aside the order and remitted the matters back for fresh consideration by the ld. CIT(A).

A.Y. 2016-17:
The claim u/s. 10(23C)(vi) was rejected for non-filing of Audit Report in Form No. 10BB within the stipulated time. The Tribunal considered a CBDT circular extending time for filing Form No. 10BB and remitted the matter back to the ld. CIT(A) for further adjudication.

The Tribunal allowed the appeal for AY 2012-13, set aside the order for AY 2015-16 for fresh consideration, and remitted the matter back for AY 2016-17 in light of the CBDT circular.

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