2018 (6) TMI 1169

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....961 (in short 'the Act'). Though the applicant assessee has been granted approval u/s10(23C)(vi), the grievance of the assessee is that it has been granted from assessment year 2017-18 onwards only, while it had been sought from assessment year 2016-17 onwards. 3. The Ld. counsel for assessee during the course of hearing before us pointed out that the Ld.CIT(E) had initially granted approval w.e.f. assessment year 2016-17 onwards only. The Ld. counsel for assessee drew our attention to the opening para of the order pointing out the said fact from the same as under: "In exercise of powers conferred by the subclauses (vi) of the clause 10(23C)(vi) of the Income Tax Act, 1961, I, the Commissioner of Income Tax (Exemptions), Chandigarh he....

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....ter make the approval applicable w.e.f. assessment year 2017-18. The Ld. counsel for assessee stated that the reason given by the Ld.CIT(E) that the assessee had treated its income for assessment year 2016-17 as exempt though the approval u/s 10(23C) had not been granted, as the reason for delaying the applicability of the approval to assessment year 2017-18 is totally irrelevant for grant of approval and is against law. The Ld. counsel for assessee stated that inordinate delay by the Ld.CIT(E) in granting the approval which approximated more than one year, since the approval was granted on 29.9.2017 as against application made on 27.9.2016, led to the assessee claiming exemption in is return filed for assessment year 2016-17 which was g....

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.... approval u/s 10(23C)(vi) of the Act is not in dispute. The only issue is the assessment year from which it has been granted. Undisputedly, the application for grant of approval had been filed before the 30th of September 2016,which is well within the time prescribed as per 14th proviso to section 10(23C)(vi) of the Act, for grant of approval w.e.f. A.Y 2016-17. The Ld.CIT(E) had also found the assessee eligible for grant of approval. In fact in the opening para of his order the Ld.CIT(E) had granted approval w.e.f. assessment year 2016-17. The only reason for shifting thereafter the applicability of the approval from assessment year 2016-17 to A.Y 2017-18 appears to be the fact that the assessee had in the meanwhile filed its return of inc....