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2019 (5) TMI 1947 - ITAT PUNEBenefit of exemption u/s 10(23C)(vi) - denial of claim as assessee has not submitted requisite form for claiming the aforesaid exemptions - appellant has been submitting form 56D (for claiming exemption u/s 10(23C)(vi)) from time to time - CIT(A) ought to have appreciated that the procedure adopted by the appellant was in tandem with the footnote & action point given at the end of form 56D - whether appellant is existing solely for imparting education? - HELD THAT:- Tribunal vide different orders relating to assessment years 2005-06 and 2007-08 have held that it is case of deemed approval where the application was not disposed of within stipulated time and hence, the assessee was eligible to claim exemption under section 10(23C)(vi) of the Act. The year under appeal before us is assessment year 2006-07 and the assessee is also relying on the said application dated 13.03.2006 filed before the Commissioner which was not disposed of within time and the case of assessee is that deemed approval is thus, granted to the assessee and the assessee is eligible to claim exemption under section 10(23C)(vi) of the Act. We find merit in the plea of assessee. Rule 2 provides that application for approval shall be made in Form 56D by the institution and clause 3 provides that approval of CBDT or the Chief Commissioner or the Director General, as the case may be, shall at any one time have effect for a period not exceeding three assessment years. Explanation to Rule 2CA provides that for the purpose of this rule, the Chief Commissioner or Director General means the Chief Commissioner or Director General to whom the Assessing Officer having jurisdiction to the assessee, is subordinate. It is also provided that application has to be made to the Commissioner, who in turn, shall forward the same to Chief Commissioner or the Director General. Taking the stock of the factual aspects of the case, application in Form No.56D was filed before the CIT-5, Pune on 13.03.2006, under which the assessee is seeking exemption for block of three years starting from assessment year 2005-06 and 2007-08. The Tribunal for assessment years 2005-06 and 2007-08 have already held the assessee entitled to the aforesaid exemption. Consequently, we hold that the assessee is also entitled to claim the aforesaid deduction for the intervening year i.e. for assessment year 2006-07 and direct the Assessing Officer to compute the income in the hands of assessee after allowing exemption under section 10(23C)(vi) of the Act. Thus, the grounds of appeal raised by assessee are allowed.
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