TaxTMI 
TaxTMI 
2023 (9) TMI 1514
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.... learned CIT ] holding that assessment order dated 4th March, 2021, passed under Section 143(3) read with section 143 (3A) and 143 (3B) of the Act is erroneous and prejudicial to the interest of the Revenue and therefore, the learned Assessing Officer was directed to conduct the assessment proceedings denovo. 02. Assessee is in appeal, raising following grounds of appeal:- "The grounds/sub-grounds mentioned herein by the Appellant are independent and without prejudice to one another. 1. Ground 1 Validity of revisionary proceedings. 1.1. That on the facts and the circumstances of the case and in law, the learned Commissioner of Income-tax (Exemptions) ("Id. CIT(E)") has erred in initiating the revisionary procee....
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.... of the case and in law, the Ld. CIT(E) has erred in appreciating the fact that claim of exemption under section 10(23EC) of the Act is available to the Appellant for income received by way of statutory contribution from commodity exchanges and members thereof. 3.2. That on the facts and the circumstances of the case and in law, the Ld. CIT(E) has erred in invoking provisions of section 11(7) of the Act and denying the exemption claimed under section 10(23EC) of the Act, disregarding the fact that Income received by way of statutory contribution from commodity exchanges and members is not an income derived from property held under trust. 3.3. That on the facts and the circumstances of the case and in law, the learned CIT(E....
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....ce income which ceased to be accumulated in terms of Section 11(3) of the Act of Rs.17,60,924/- was offered as an income. 05. The case of the assessee was picked up for scrutiny and after examination of the details, the return income was accepted by passing assessment order u/s 143(3) of the Act. 06. The learned CIT on examination of the record found that assessee is claiming exemption under Section 10(23EC) of the Act as well as availing benefit of Section 11 and 12 of the Act simultaneously, which is not in accordance with Provision of Section 11(7) of the Act and therefore, the order passed by the learned Assessing Officer is erroneous and prejudicial to the interest of the Revenue. 07. The show cause notice was issued on 24th F....
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....same income under both the sections. He submitted that exemption under Section 10(23EC) of the Act is claimed with respect to contribution income and further benefit of section 11 and 12 of the Act is claimed with respect to other income, i.e. other than contribution income. He further stated that the co-ordinate Bench in assessee's own case reported in TS-557-ITAT-2023(Mum) has categorically held that only with effect from 1st April, 2024, amendment is made whereby the exception of Section 10(23EC) has been removed from section 11(7) of the Act. He therefore submitted that assessment years prior to April, 1st, 2024, the computation of the income and the assessment order are in accordance with the law. It was further stated that the learned....
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....see should not have been granted benefit under Section 10(23EC) of the Act as it is registered under Section 12A of the Act. 11. Section 10 (23EC ) provides as under :- Incomes not included in total income. 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included- (23EC) any income, by way of contributions received from commodity exchanges and the members thereof, of such Investor Protection Fund set up by commodity exchanges in India, either jointly or separately, as the Central Government may, by notification in the Official Gazette43, specify in this behalf: Provided that where any amount standing to the....
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.... Provided further that the trust or institution, whose registration has become inoperative under the first proviso, may apply to get its registration operative ^40[under section 12AA] ^41[or section 12AB] subject to the condition that on doing so, the approval under clause (23C) of section 10 or notification 41a[under clause (46)] of the said section, as the case may be, to such trust or institution shall cease to have any effect from the date on which the said registration becomes operative and thereafter, it shall not be entitled to exemption under the respective clauses.] ^42[Explanation.-For the purposes of this section, any sum payable by any trust or institution shall be considered as application of income in the previous ye....