2022 (6) TMI 663

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....09-10. 2. Briefly stated, the assessee is a society registered under Societies Registration Act, 1860 engaged in imparting of education activities. The society is registered under Section 12A of the Act. The assessee filed its return of income declaring total income of Rs. 32,63,419/- and claimed exemption under Section 11 and 12 of the Act. While framing the assessment, the Assessing Officer made certain additions and disallowances and assessed the income at Rs. 86,73,170/- and denied the exemption thereon under Sections 11 and 12 of the Act as also under Section 10(23C)(iiiad) of the Act. The income so assessed was charged to tax on maximum marginal rate. 3. Aggrieved, the assessee preferred appeal before the CIT(A). The CIT(A) has deal....

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.... under section 11 of the IT Act 1961. 3.3 During the course of appeal proceeding, the AR of the appellant stated in his written submission firstly that merely because of the fact that the appellant had quoted the wrong section that is section 12A instead of section 11 the AO should not have denied the exemption to the appellant and secondly that AO should not have denied the exemption by considering the facts of previous assessment years as each assessment year should be independently considered. 3.4 I have gone through the assessment order as well as the written submission of the AR. First of all, it is obvious that the appellant had not filed its return of income on or before the due date prescribed under section 139(1) and therefore ....

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....on of Rs. 18,79,013/- on fixed assets. During the course of assessment proceedings the AO asked the appellant that since it has claimed exemption in respect of assets in earlier years the depreciation on the same should be disallowed. In its response, the appellant had submitted that fixed assets has never been claimed against revenue and therefore no part of depreciation can be disallowed. During the course of appeal proceedings, the AR of the appellant had more or less repeated the same arguments. 5.2 I have considered the rival submissions. It seems that the AO is taking a contradictory stand on this point. The AO has discussed in detail in his assessment order that income of the appellant is not exempt either under the provision of se....

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.... taxation prescribed for Assessing Officer during the concerned A.Y. The ground of appeal number five is considered allowed for statistical purposes." 4. Aggrieved by the denial of relief by the CIT(A), the assessee preferred appeal before the CIT(A). 5. When the matter was called for hearing, none attended on behalf of the assessee. It is noticed from the case records that several opportunities were given to the assessee in the matter without any avail. Accordingly, the matter was proceeded ex-parte in the absence of the assessee. 6. On perusal of the first appellate order, the CIT(A) has observed that the assessee has not filed its return of income before the date prescribed under Section 139(1) and therefore in view of Section 139(4A)....