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2014 (10) TMI 779 - AT - Income TaxExemption to be allowed u/s 10(23C)(vi) or section 11 assessee claimed exemption u/s 11 Held that:- Deduction was claimed u/s 11 of the Act in the return of income and the assessee was not having exemption u/s 10(23C)(vi) of the Act at the time of filing of the return of income - The assessee had made an application for the approval which was received by the assessee for the AY 2005-06 wrongly which was rectified by the CCIT vide her order dated 12.07.2010 for the AY 2005-06 and onwards for all the times to come - the assessee was having approval u/s 10(23C)(vi) from the CCIT, though the same was rectified u/s 154 of the Act on 12.07.2010 - the assessee had option to make claim u/s 10(23C)(vi) or Section 11(1) of the Act as decided in Bharati Vidyapeeth Medical Foundation vs. ACIT [2014 (7) TMI 94 - BOMBAY HIGH COURT] the assessee cannot be forced to go for deduction u/s 11 of the Act - Though the claim was made before the AO during assessment proceedings, as and when the assessee got the rectified order from CCIT - It was only under the exceptional circumstances that the assessee could not claim exemption u/s 10(23C(vi) of the Act, as mentioned hereinabove. Such rectification is bound to be there in view of Circular No.725 dated 16.10.1995 issued by the CBDT as per the Circular No.725 dated 16.10.1995 of CBDT, the AO was under obligation to allow exemption u/s 10(23C)(vi) of the Act and there is nothing on record that the assessee has contravened any of the conditions as required u/s 10(23C)(vi) of the Act - assessee's income is exempt u/s 10(23C)(vi) of the Act and there was no infirmity in the order of the CIT(A) Decided against revenue.
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