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2022 (3) TMI 1194 - ITAT MUMBAIExemption u/s 11(2) - whether the AO/Ld. CIT(A) have erred in not granting the exemption under section 11(2) of the Act despite satisfying the conditions by the assessee as laid down under section 11(2) of the Act while processing the return of the income under section 143(1)? - HELD THAT:- When the assessee has submitted form No.10 within time in compliance to Rule 17, the AO has erred in denying the benefits claimed by the assessee under section 11(2) of the Act. At the same time, the Ld. CIT(A) has also erred in dismissing the appeal filed by the assessee challenging the order under section 154 of the Act passed by the AO. It is also brought to the notice of the Bench by the assessee that for the earlier years AO allowed such rectification application vide order dated 25.02.2020. In these circumstances, Revenue Authorities were required to follow the “rule of consistency” instead of generating unnecessary litigation. We are of the considered view that rectification application filed by the assessee before the AO and the appeal filed before the Ld. CIT(A) were liable to be allowed. Hence appeal filed by the assessee is accepted and AO is directed to rectify the order by allowing the claim admissible to the assessee under section 11(2) of the Act after due verification of the facts claimed by the assessee.
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