TaxTMI 
TaxTMI 
2024 (9) TMI 1891
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....per Income and Expenditure A/c Rs. 8,20,85,351/- Less: Rs. 6,28,43,345/- Revenue expenditure as per Income & Expenditure Account Rs. 1,92,42,006/- Total income Rs. 1,92,42,006/- Rounded off Rs. 1,92,42,010/-" Assessee had furnished its return of income for the assessment year 2016-17. As per said return, assessee had declared its total income as Nil. Its case was selected for complete security through CASS. Thereupon, e-notice u/s 143(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was issued by the Income Tax Officer, Ward, Tonk. Ultimately, assessment order was passed on 06.12.2019, taking into account the status of the assessee as that of an AOP. What weighed with the Assessing Officer in framing the assessment was that that the assessee was not registered u/s 12A of the Act and also because the assessee did not have any notification issued/certificate granted u/s 10(23C)(vi)/12AA of the Act so as to claim exemption of income under any provisions of the said Act. In para 6.1 of the assessment order, the Assessing Officer held that exemption claimed by the assessee in its return of income, u/s 11 and 12 of the Act....
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....to the notice of the Learned CIT(A), but, CIT(A) upheld the decision of the Assessing Officer and declined exemption claimed by the assessee u/s 11 and 12 of the Act on the ground that as on 06.12.2018 i.e. framing of the assessment by the Assessing Officer, the assessee was not registered u/s 12AA of the Act. As is available from para 4 of the order dated 20.12.2019, passed by Learned CIT(E), the assessee society was granted registration as "charitable education GPUH", while also specifying that provisions of Section 11 and 12 of the Act shall apply w.e.f. 01.04.2017 i.e. when the application in Form No. 10A of the Act, seeking registration 12A is stated to have been furnished. While referring to the said decision by CIT(E), Ld. AR for the assessee has contended that the assessee, even if registered u/s 12AA of the Act, vide order dated 20.12.2019, became entitled to the provisions of Section 11 and 12 of the Act with retrospective effect i.e. 01.04.2017. Learned AR has placed reliance on decisions by the Co-ordinate Bench in Shri Parnami Panchayat v. Income Tax Officer, ITA No.14/JP/2023, decided on 18.8.2023; Prem Prakash Mandal Sewa Trust v. ITO (Exemption), ITA Nos. 2....
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...., then it would not be entitled to a registration under section 12 AB. In CIT(E) v. Indian Institution of Banking and Finance, 408 ITR 558, it was observed that merely because an assessee has been denied exemption under sections 10(22), (23) or (23C), it will not mean that he must be denied exemption under section 11 of the Act as well. 12. Picking up the thread, here, the assessee while furnishing ITR for the year under consideration chose to have exemption under section 10(23C) of the Act and not to have benefit of exemption under section 11 of the Act. We are of the considered view that once, the assessee opted to avail of exemption under section 10(23C), it could not have resort to the exemption under section 11 simply because subsequently its prayer for registration under section 12 AA was allowed. As per para 6.1 of the assessment order, as per ITR, the assessee had claimed exemption, u/s 10(23C)(iii ad) of the Act. Ld. DR for the Department has, therefore, rightly contended that this case does not pertain to any claim by the assessee, of any exemption u/s 11 and 12 of the Act, and rather, as per claim of the assessee itself, it claimed exemption u/s 10(23C)(iiiad....
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.... or Commissioner. On the same point, Ld. AR for the assessee has placed reliance on the following decisions:- ● CIT & Anr. Children's Education Society, (2013),92 DTR 158 (Kar. (HC). ● Manse Sewa Samiti vs. Addl. CIT, (2021) 208 DTR 41. ● Param Hans Swami Uma Bharti Mission vs. ACIT, (2013), 140 ITD 429 (Deo.) (Trib.) ● PKD Trust Vs. ITO, (2017), 163 ITD 502(Chennai )(Trib.) 16. On the other hand, ld. DR for the Revenue -Department has contended that case of the assessee is covered by sub-clause (vi) of Section 10(23C) of the Act, and not by clause (iiiad) of said section, and that in absence of any approval by the Learned Principal Commissioner or Commissioner, the assessee was not entitled to any exemption, as rightly observed by the Assessing Officer in the assessment order. 17. At this stage, section 10(23C)(iiiad) & (vi) of the Act need to be referred to the extent it is relevant for the purpose of adjudication of the issue involved herein. Section 10(23C)(iiiad) of the Act reads as under:- "10 in commutating the total income of a previous year of any persons, any income falling within any o....