TaxTMI 
TaxTMI 
2016 (5) TMI 1102
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....eturn of income inspite of the fact that assessee had ample time and opportunity at its disposal for doing so. 4. On the facts and in the circumstances of the case, ClT(A) has erred in not appreciating the position that inspite of having ample time and opportunity for making claim of exemption u/s 11 during assessment proceedings, the assessee did not make any such claim before AO. 5. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in assuming powers of the AO and not appreciating correct position of law laid down by Hon'ble Supreme Court of India in M/s Goetze (India) Ltd. Vs. CIT (2006) 284 ITR 0324 that AO cannot entertain a claim made otherwise than by way of Revised Return of Income. 6. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in not appreciating the correct position Of law that the fresh claim of exemption under section 11 of the Income-tax Act, 1961 cannot be entertained at appeal stage as the AO did not have any opportunity to carry out due process of examination and adjudication regarding claim of exemption u/s 11 of the I.T. Act including examination of conditions of eligibility ....
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....me was filed. 3.2 It was argued that the amount of tax involved and number of entries in the return of TDS are as under: i) Assessee had filed income tax return claiming exemption u/s 10(23C)(vi) when the application for grant of approval of exemption was pending before Ld. CCIT, Panchkula. As the society is fulfilling all the terms and conditions of section 10(23C)(vi) of income tax Act, 1961, therefore assessee is eligible to claim the said exemption under section 10(23C)(vi), which wrongly denied by the Ld. Assessing Officer'. ii) From the aims and objects-running from 1 to 15 it can be observed that the sole aim of the assessee is education and thus charitable in nature. The Assessing Officer failed to consider the same. 3.3 Assessee argued before Ld. CIT(A) that the application that applications for approval of exemption was denied by C.C.I.T Panchkula but later on Hon'ble High Court Punjab & Haryana has passed an order dated 03.10.2011 in assessee's case allowing own grant of approval under section 10(23C)(vi) of Income Tax Act, 1961. Hon'ble High Court Punjab & Haryana allowed writ petition filed by the assessee and impugned orders declining the appli....
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....ion of letter of granting registration under section 12A which subsequent to the filing of return of income, I hold that the assessee society was entitled to claim deduction under section 11 & 12 which I allow based on the additional claim now made by the assessee society. The appeal is allowed in favour of assessee society on this ground." 4. Aggrieved by the order of Ld. CIT(A), the Revenue is in appeal before us now. 4.1 Ld. D.R. submitted before the Bench that the first appellate authority erred in not appreciating the position that the assessee did not make the claim of exemption u/s 11 before the Assessing Officer and therefore, there was no opportunity that was granted to the Ld. Assessing Officer to verify such claim. He submitted that Ld. CIT(A) has erred in assuming the powers of the Assessing Officer without appreciating the correct position of law as laid down by Hon'ble Supreme Court in the case of M/s. Goetze (Indi) Ltd. Vs CIT reported in 284 ITR 324. He vehemently argued that the Assessing Officer could not entertain the claim made otherwise then by way of revised return and therefore the claim made by the assessee u/s 11 & 12 of the Act. Almost it is a fr....
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....bal Securities Ltd. in I.T.A.No. 214/2013 wherein the Hon'ble High Court held as under: "The power of the tribunal in dealing with appeals is thus expressed in the widest possible terms. The purpose of the assessment proceedings before the taxing authorizes is to assess correctly the tax liability of an assessee in accordance with law. We do not see any reason to restrict the power of the Tribunal under section 254 only to decide the grounds which arise from the order of the CIT(A). Both the assessee as well as the Department have a right to file an appeal / cross objections before the Tribunal. We fail to see why the Tribunal should be prevented from considering questions of law arising in assessment proceedings although not raised earlier." 5. We have perused the orders passed by authorities below, the arguments advanced by both the parties and the judgements relied upon by them. The issue before us for consideration is, whether the Ld. CIT(A) was right in allowing the claim of deduction raised by the assessee by way of an additional ground u/s 11 & 12 of the Act. When no such claim was made by the assessee in original return of income filed on 27.09.2010, it is c....