TaxTMI 
TaxTMI 
2022 (8) TMI 201
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....r called "the AO") under Section 154 of the Income-tax Act,1961(hereinafter called " the Act") .We have heard both the parties through physical hearing mode in Open Court proceedings. Since , both these appeals involves common issues , both the appeals were taken up together and disposed off by this common order. 2. First , we shall take up assessee's appeal in ITA no. 09/Alld/2011 for ay: 2011-12. The grounds of appeal raised by Assessee in ITA No. 09/Alld./2021 for ay:2011-12, in memo of appeal filed with Income-Tax Appellate Tribunal, Allahabad Bench , Allahabad(hereinafter called " the tribunal") , reads as under:- "1. That in any view of the matter order passed under section 154 of the Act dated 22.09.2017 is bad both on the facts and in law and the assessing officer was wrong in denying genuine claim of the society. 2. That in any view of the matter the assessee society is engaged in carrying out educational activities as per rule and by-laws of the society and runs educational institution and claim exemption under section 10(23C)(iiiad) of the Act but both the two lower authorities failed to consider the genuine claim of the society which is highly unjus....
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....e assessee is existing solely for the educational purposes as required under Section 10(23C)(iiiad) of the 1961 Act. The AO , thus , held that the assessee is not entitled to exemption u/s 10(23)(C)(iiiad) of the 1961 Act. The AO rejected the rectification application filed by the assessee under Section 154 of the 1961 Act, vide orders dated 22.09.2017 passed u/s 154 of the 1961 Act. 4. Aggrieved by an order dated 22.09.2017 passed by AO u/s 154 of the 1961 Act, the assessee filed first appeal before Ld. CIT(A) , who dismissed the appeal of the assessee by observing that as per provisions of Section 10(23C)(iiiad) of the 1961 Act , income of any university or other educational institution existing solely for educational purposes is exempt from income-tax. The ld. CIT(A) observed that the assessee has incurred expenses towards Tree Plantation Programme and Women Welfare Programme which are not for educational purposes. The ld. CIT(A) held that the society is not existing solely for educational purposes as is required u/s 10(23C)(iiiad). The ld. CIT(A) observed that the assessee should run /establish educational institution for claiming exemption. Further, the ld. CIT(A) observed ....
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....h January, 2016. (pb/pag9-10) . The ld. Counsel for the assessee relied upon decision of Hon'ble Allahabad High Court in the case of Manas Sewa Samiti v. CCIT, reported in (2016) 236 taxmann 546(All.) . The ld. Counsel for the assessee submitted that the assessee also go recognition from Professor Rajinder Singh( Rajju Bhaiya) University, Prayagraj, U.P. . The ld. Counsel for the assessee also relied upon the decision of Chandigarh-tribunal in the case of ITO v. Shri Balaji Prem Ashram & Nikhil Vidalaya, reported in (2016)156 ITD 479(Chd-trib.) . The ld. Counsel for the assessee also relied upon decision of Indore-tribunal in the case of Rajiv Gandhi Proudyogiki Vishwavidalaya v. DCIT, CPC, Bengaluru. On being asked by the Bench that for ay: 2011-12, there are no educational fee being credited in Income and Expenditure Account and while staff salary for the entire year is meager Rs. 72,000/- , it was submitted by ld. Counsel for the assessee that the educational institution was not started during this period and was under construction , and was on verge of starting the educational activities which infact were started in subsequent years, but it was claimed that the assessee society....
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.... by the assessee, and not on the total income of the assessee 7. The ld. Counsel for the assessee in rejoinder submitted that the matter can be set aside and restored to the file of AO , for framing assessment, and the assessee will produce books of accounts and other details before the AO. 8. We have considered rival contentions and perused the material on record. The assessee has claimed itself to be a society registered under the Societies Registration Act. The assessee has claimed that it is engaged in educational activities. It filed its return of income for ay: 2011-12 on 31.03.2013 declaring Nil Income. The assessee claimed in the return of income filed with Department, that it is eligible for deduction u/s 11 and 12 of the 1961 Act. However, no particulars of Registration held by the assessee u/s 12A was furnished in the return of income filed with the department. This return filed by assessee itself is a belated return , which was not filed within due time as is prescribed u/s 139(4A) read with Section 139(1) of the 1961 Act. The assessee did not claim any exemption u/s 10(23C)(iiiad) of the 1961 Act, while filing its return of income with department for ay: 2011-12.....
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....ion u/s 10(23C)(iiiad) in its return of income filed with the Department, rather it claimed exemption 11 and 12 of the 1961 Act, despite the fact that it never held registration u/s 12A at the relevant point of time. The assessee duly filed Audit Report signed by Mr. Ashok Kumar Singh(Partner- M.No.406806), Chartered Accountant , Partner in Sandeep Prakash & Co. 11/6,Taskand Marg, Opp Patrika Press , Civil Line, Allahabad, in Form No. 10B as prescribed under Rule 17B of the Income-tax Rules,1962 , which is required under clause (b) of Section 12A, for availing exemption u/s 11 and 12 of the 1961 Act. The assessee did not file revised return of income to claim exemption u/s 10(23C)(iiiad) , rather originally the assessee filed belated return of income which infact could not have been revised u/s 139(5). The assessee set up claim for the first time for grant of exemption u/s 10(23C)(iiiad) by filing rectification application u/s 154 of the 1961 Act. The Hon'ble Apex Court has held in Pr. CIT v. Wipro , reported in (2022) 140 taxmann.com 223(SC) , that scope in filing revised return is to only correct omissions and errors , rather than bringing an altogether new claim in revised retur....
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.... without filing the revised return of income, the assessee could have submitted the declaration in writing to the assessing officer during the assessment proceedings has no substance and the same cannot be accepted. Even the submission made on behalf of the assessee that filing of the declaration subsequently and may be during the assessment proceedings would have made no difference also has no substance. The significance of filing a declaration under section 10B (8) can be said to be co-terminus with filing of a return under section 139(1), as a check has been put in place by virtue of section 10B (5) to verify the correctness of claim of deduction at the time of filing the return. If an assessee claims an exemption under the Act by virtue of Section 10B, then the correctness of claim has already been verified under section 10B (5). Therefore, if the claim is withdrawn post the date of filing of return, the accountant's report under section 10B (5) would become falsified and would stand to be nullified." Thus, Judged from any angle, the appeal of the assessee lacks merit , and is hereby dismissed. We order accordingly. 9. In the result appeal filed by the assessee in ITA no.....