2025 (9) TMI 1034

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assed for A.Y. 2012- 13. 2. The assessee has raised the following grounds of appeal: "1. That on facts, in law, and on evidence on record, the learned Addl/JCIT(A)-5, Delhi has grievously erred in confirming the rejection of claim of exemption u/s 10(23C)(iiiab) of the Act. 2. That on facts, in law, and on evidence on record, the learned Addl/JCIT (A)-5, Delhi ought to have considered the fact that the appellant ahs filed the return of income in the correct Form ITR-7 on 31/03/2013, which is a valid return, and the exemption ought to have been granted u/s 10(23C) (iiiab) of the Act as prayed for. 3. That in the alternate, and without prejudice to the above grounds of appeal, the CPC and Addl / JCIT(A)-5, Delhi ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) of the Act and the assessee came to know about denial of exemption only when the assessee received recovery letter dated 16.08.2018 towards recovery of outstanding demand. The assessee submitted that that it was substantially financed by the Government of Gujarat and was thus clearly entitled to exemption under Section 10(23C)(iiiab), read with Rule 2BBB of the Income Tax Rules, 1962. The assessee submitted supporting documents viz. Grant Orders, audited financial statements, and evidence of more than 50% of its funding being through Government grants during the relevant assessment year under consideration. The CIT(A), while admitting the appeal and condoning the delay, dismissed the appeal on merits. The CIT(Appeals) held that procedural....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assessee, educational trust, filed its return in ITR-5 instead of ITR-7 but had evidently demonstrated that it was eligible for claim of exemption under section 10(23C) and all conditions laid therein had been duly satisfied by assessee trust, matter was to be remanded to Assessing Officer to verify claim of assessee afresh. In the case of Kathikode Charitable Trust vs. Income-tax Officer [2024] 162 taxmann.com 866 (Cochin - Trib.)/[2024] 207 ITD 588 (Cochin - Trib.)[10-05-2024], ITAT held that where assessee-trust filed its return in Form 5 claiming loss, which was meant for business income, however, it was a charitable trust working for promotion of education, culture and philosophy, since returning income in a wrong Form could not result....