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2022 (10) TMI 456 - AT - Income TaxExemption u/s 11 - recognition as a charitable institution for granting exemption u/s 10(23C)(vi) denied - HELD THAT:- Every assessment year is a separate unit and the activities of the taxpayer are to be evaluated for each of the assessment year, before granting exemption u/s 10(23C)(vi). These are factual aspects which need verification of facts. The assessee has not even filed before us the audited financial statements for the impugned AY’s . CCIT while rejecting application of the assessee for grant of approval u/s 10(23C)(vi) has not exhaustively dealt with all the aspects of the matter in a comprehensive manner. The matter needs to be restored back to ld. CCIT for passing a detailed and exhaustive order by going through various activities carried on by the assessee , and then arriving at decision as to the allowability of claim of the assessee seeking approval u/s 10(23C)(vi). CCIT shall also consider recent decision in the case of PCIT v. Wipro Limited [2022 (7) TMI 560 - SUPREME COURT] as the assessee in the instant case before us is already claiming benefit of exemption u/s 11 and 12 of the 1961 Act for all these years , on strength of registration u/s 12A , and accordingly returns were filed by assessee with Revenue for all those years. It is also claimed by assessee that exemption provisions are to be liberally construed , however we draw attention to case of Commissioner of Customs(Imports) , Mumbai v. Dilip Kumar & Co. [2018 (7) TMI 1826 - SUPREME COURT] wherein Hon’ble Supreme Court held that exemption provisions are to be strictly construed. We clarify that we have refrained ourselves from commenting on merits of the issue’s in this appeal, so that ld. CCIT can decide the issue unhindered by any of our observations. We are setting aside the common order passed by ld. CCIT u/s 10(23C)(vi) holding that the assessee does not qualify to be accorded recognition as a charitable institution for granting exemption u/s 10(23C) (vi) for assessment year’s (ay’s): 2000-01 to 2003-04 , 2006-07 and 2007-08, for denovo determination of the issue after granting proper and adequate opportunity to the assessee. All the evidences/submissions filed by the assessee in its defense shall be admitted by CCIT , and then adjudicated on merits in accordance with law.
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