2026 (7) TMI 2019

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.... The order of the ld. CIT(A) is erroneous, contrary to law and facts of the case. 2. The ld. CIT(A) erred in confirming the action of CPC in restricting the exemption u/s. 10(10AA) to Rs. 3,00,000/- as against Rs. 10,35,184/- claimed by the appellant. 3. The ld. CIT(A) failed to appreciate that the appellant is entitled to higher exemption in view of judicial pronouncements holding that enhancement of exemption limit, being beneficial in nature, is applicable to earlier assessment years. 4. The ld. CIT(A) erred in not considering the CBDT Notification dated 24.05.2023 in its proper perspective and the ratio laid down in the decisions relied upon by the appellant. 5. The ld. CIT(A) erred in confirming the ....

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....ed exemption is applicable only from Assessment Year 2024-25 onwards and cannot be extended to Assessment Year 2021-22. The CIT(A) also observed that the explanatory memorandum accompanying the notification cannot override the express language of the notification. According to the CIT(A), although the assessee relied upon various decisions of the Tribunal extending the benefit of the enhanced exemption to earlier assessment years, such decisions were held to be fact specific and incapable of overriding the express effective date prescribed in the notification. Consequently, the restriction of exemption to Rs. 3,00,000/- and the rectification order u/s. 154 were confirmed. Against the order of the CIT(A), the assessee is in further appeal....

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....exemption limit is applicable only from Assessment Year 2024-25 onwards. It was further argued that neither the Tribunal nor the appellate authorities can rewrite or enlarge the scope of a statutory notification by giving retrospective operation where the notification itself prescribes the effective date. The explanatory memorandum cannot override the statutory notification. The ld. DR therefore submitted that the CPC correctly restricted the exemption to Rs. 3,00,000/- and the CIT(A) rightly confirmed the same. 6. We have heard the rival submissions and carefully perused the material available on record. The short controversy before us is whether the enhanced exemption limit of Rs.25,00,000/- u/s. 10(10AA), notified by CBDT Notification....

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....lowing the above principles and holding that the notification is beneficial in nature and intended to remove an anomalous situation arising from the non-revision of the exemption limit for several decades. Reference may be made to Co-ordinate Bench orders in Balasubramanian Venkatachalaperumal v. DCIT, Non-Corporate Circle-4(1), Chennai, ITA No. 96/Chny/2026, order dated 04.05.2026 and Vattikundala Prabhakara Rao v. DCIT, ITA No. 3852/Chny/2025, order dated 12.06.2026, wherein the Chennai Bench held that the enhancement of exemption u/s. 10(10AA)(ii) to Rs.25,00,000 by CBDT Notification No.31/2023 is a beneficial and curative measure intended to remove hardship and, following the principles laid down by the Supreme Court in Allied Motors (P....