TaxTMI 
TaxTMI 
2025 (12) TMI 1752
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....ovisions of the Maharashtra Act No.41 of 1965 i.e. Maharashtra Secondary and Higher Secondary Education Boards Act, 1965. It conducts the higher secondary certificate and secondary school certificate examinations in the entire state of Maharashtra through its nine Divisional Boards located at Pune, Mumbai, Chhatrapati Sambhajinagar, Nashik, Kolhapur, Amravati, Latur, Nagpur and Ratnagiri. It filed its return of income on 23.11.2022 declaring Nil income after claiming exemption u/s 10(46) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). During the year under consideration the total receipts of the assessee were Rs. 1,91,86,33,440/- out of which the total application of income towards the objects of the assessee board were Rs. 1,85,94,67,002/- and the assessee board has balance amount of Rs. 5,91,66,438/- which was claimed as exempt. The assessee has filed audit report in Form No.10B on 31.03.2024 along with copy of audited Income & Expenditure statement for financial year ending as on 31.03.2022. The CPC vide intimation dated 28.07.2023 rejected the claim of deduction u/s 10(46) of the Act. 3. Before the Ld. Addl / JCIT(A) it was argued that it was inad....
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....91,86,33,440/-, out of which total application income towards the objects of the appellant was of Rs. 1,85,94,67,002/-. Thus total accumulation of income of appellant was Rs. 5,91,66,4238/- which was claimed inadvertently as exempt under section 10(46) instead of under section 10(23C)(iv) of the Act. On going through the return of income and documents available on record that appellant had inadvertently claimed in wrong section. Further appellant had duly obtained the prior approval from the Ld. Commissioner of Income Tax vide Form 10AC on 07.10.2023, which is applicable for instant assessment year. Thus, the contention of appellant is prima facie found to be tenable. Consequently, the grounds of appeal are allowed with deletion of addition made by the A.O u/s 143(1) dated 28.07.2023. 8.0 In the result, the appeal of appellant is hereby allowed. 5. Aggrieved with such order of the Ld. Addl / JCIT(A), the Revenue is in appeal before the Tribunal by raising the following grounds: 1. On the facts and circumstances of the case, the Ld. Addl/JCIT(A) has erred in allowing claim of exemption by the assessee at the appellate stage despite the fact that the same was not....
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.... 4. On the facts and in the circumstances of the case and in law and without prejudice to any other ground, Ld. CPC Bengaluru has erred in denying the exemption u/s 10(23C)(iv) of the Act and thereby further erred in assessing the total income of the Appellant at Rs. 5,91,66,438/- as against the returned income of Rs NIL which is factually and legally incorrect and invalid and hence, the said addition of Rs. 5,91,66,438/- made to the returned income should be set aside and the demand raised by the CPC may please be deleted. 5. On the facts and in the circumstances of the case and in law and without prejudice to other grounds, the Appellant is 'State' within the meaning of Article 12 of the Constitution of India and hence, as per Article 289 of Constitution of India it not liable to tax at all and therefore, the impugned addition of Rs. 5,91,66,438/- and consequential demand raised is unconstitutional and thus, illegal, invalid and bad in law and therefore, the addition made as well as demand raised may please be quashed and set aside. 6. On the facts and in the circumstances of the case and in law and without prejudice to any other ground and assuming....
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....d that where assessee, an educational institution, claimed exemption under section 10(23C)(iiiad) only after it received approval under section 10(23C)(i) read with section 10(23C) (vi) for relevant year, it was entitled for claiming exemption under section 10(23C) even though it was not registered under section 12A. 10. Referring to the decision of the Lucknow Bench of the Tribunal in the case of Desh Bharti Public School Samiti reported in (2022) 195 ITD 600 (Lucknow- Trib.), he submitted that the Tribunal in the said decision has held that where assessee, a trust, in earlier years had been claiming exemption under section 10(23C) and it got registration under section 12A on 2-9-2014 and it in return filed for assessment year 2014-15 claimed exempt income under section 10(23C) instead of claiming same under section 12A, mistake had occurred as a human error and thus Assessing Officer was to be directed to allow exemption under section 12A. 11. Referring to the CBDT Circular No.14(XL-35)/1955 dated 11.04.1955, he submitted that according to the said circular, the tax officers are required to assist the taxpayers in making legitimate claims for exemption or relief. He submitt....
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....n Code/Zip Code 411005 3 Document Identification Number AAAJM1081BA2021101 4 Application Number 364192380300923 5 Unique Registration Number AAAJM1081BA20211 6 Section/sub-section/clause/sub-clause/proviso in which approval is being granted 03-Clause (i), of first proviso to clause (23C) of section 10 (for applicants covered under sub- clause (iv) of clause (23C) of section 10) 7 Date of approval 07-10-2023 8 Assessment year or years for which the trust or institution is approved From AY 2022-23 to AY 2026- 2027 9 Order for approval: a. After considering the application of the applicant and the material available on record, the applicant is hereby granted approval with effect from the assessment year mentioned at serial no 8 above subject to the conditions mentioned in row number 10 b. The taxability, or otherwise, of the income of the applicant would be separately considered as per the provisions of the Income Tax Act, 1961. c. This order is liable to be withdrawn by the prescribed authority if it is subsequently found that the activities of the applicant are not genuine or if they are not carried out in accor....
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....me allowed under that clause. Name and Designation of the Approving Authority CAPPAX DEP Principal Commissioner of Income Tax/ Commissioner of Income Tax (Digitally signed) 14. We find Hon'ble Bombay High Court in the case of Sanchit Software & Solutions (P.) Ltd. vs. CIT (supra) has held that where the assessee sought to exclude its dividend income and long term capital gains from sale of shares u/s 10 but by mistake, omitted to exclude them, revision could not be denied. The Hon'ble High Court while deciding the issue has observed as under: 5. In any civilized system, the assessee is bound to pay the tax which he liable under the law to the Government. The Government on the other hand is obliged to collect only that amount of tax which is legally payable by an assessee. The entire object of administration of tax is to secure the revenue for the development of the Country and not to charge assessee more tax than that which is due and payable by the assessee. It is in aforesaid circumstances that as far back as in 11/04/1955 the Central Board of Direct Tax had issued a circular directing Assessing Officer not to take advantage of assessee'....
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....ts and gains from business or profession (i) Profit and gains from business other than speculative business (A37 of Schedule-BP) (enter nil If loss) (2i) NIL (ii) Profit and gains from speculative (B41 of Schedule-BP) (enter nil if loss) (2ii) NIL (iii) Total (2i + 2ii) (2iii) NIL (3) Capital Gains (a) Short term (i) Short-term (under section 11A (A7 of Schedule CG) (3ai) NIL (ii) Short-term (others) (A8 of Schedule-CG) (3aii) NIL (iii) Total short-term(3ai + 3aii) (enter nil if loss) (3aiii) NIL (b) Long-term (B6 of Schedule-CG) (enter nil if loss) (3b) 680914 (c) Total expenses gains (3aiii + 3b) (3e) 680914 (4) Income from other sources (a) From sources other than from owning race horses (3 of Schedule OS) (enter nil if loss) (4a) 110651 (b) From owning race horses (4c of Schedule OS) (enter nil if loss) (4b) NIL (c) Total (a + b) (4c) 110651 (5) Total (1+ 2i....
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.... maintainability of a revision application. 9. At the same time, it must be pointed out that the petitioner's application for rectification filed on 8.02.2010, has not yet been disposed of. The apprehension of the petitioner that the Assessing Officer would consider himself bound by the findings in the order dated 7.04.2011, of the Commissioner of Income-tax, is not well founded. The impugned order was not based on the merits of the matter and has no relevance to the application under section 154. In any event, now that the order dated 7.04.2011, of the Commissioner of Income-tax under section 264 of the Act has been set aside for fresh consideration, the Assessing Officer would be bound to and is directed to consider the rectification application filed by the petitioner on its own merits, without being influenced by the impugned order or awaiting the result of the revisional proceedings before the Commissioner of Income-tax on remand. 10. We are conscious of the fact that in terms of sub-section (8) of Section 154 of the Act, a Rectification application has to be disposed of within six months from the date of the application for rectification. Therefore we di....
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.... of claiming the same u/s 12A, is entitled for exemption u/s 12A. The relevant observations from para 4 onwards read as under: "4. We have heard the rival parties and have gone through the material placed on record. We find that it is undisputed fact that assessee got registration u/s. 12A of the Act w.e.f. 1.4.2013 vide order dated 2.9.2014, a copy of such registration certificate is placed in P.B. pg.24. It is also an undisputed fact that assessee in the earlier years has been claiming exemption u/s.10(23C) of the Act and which was being allowed by the department also as the receipt of the assessee in the earlier years were less than Rs. 1.00 crore. During the year under consideration, the assessee got the registration u/s.12A of the Act on 2.9.2014 and filed the income tax return on 20.9.2014. Along with filing of return of income, the assessee also uploaded Form-10B which is audit report u/s. 12A(b) of the Act. However, in the return of income, the assessee claimed exempt income u/s.10(23C) instead of claiming the same u/s. 12A of the Act. The CPC rejected the claim of the assessee u/s.10(23C) by holding that the assessee had not obtained necessary approval from the pr....