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2023 (4) TMI 891 - AT - Income TaxDenial of exemption u/s 10(26BBB) - assessee is not formed under Central, State or Provincial Act but formed under a resolution passed by the Government of Maharashtra and thereby not eligible for exemption u/s 10(26BBB) - HELD THAT:- NFAC correctly held that as evident from the said provision i.e. sec. 10(26BBB) of the Act that any income of corporation which is established either by Central, State or Provincial Act only is exempted u/s 10(26BBB) of the Act. In this case, the assessee-corporation has come into existence by a Resolution of Government of Maharashtra and not by any Act of Central, State or Province. We are of the considered view that whenever a financial legislation is interpreted, it has to be interpreted literally or in other words there has to be literal interpretation of the said provision. Meaning thereby what exactly is the intention of the legislature in respect of that particular provision, that exactly has to be read into it and one cannot improvise through judicial activism or otherwise extending or reducing the scope of such financial legislation In order to claim exemption, the corporation has to be established only through the Act and not by any other means. Therefore, the NFAC has given a correct interpretation of the said section. Denying grant of registration/s 12AA of the Act to the assessee - assessee has taken a ground that the issue of grant of registration u/s 12AA is pending before the ld. CIT Exemption as per the basis of directions of Pune Tribunal vide [2021 (6) TMI 811 - ITAT PUNE] in assessee’s own case. Having considered this development and the chain of events in assessee’s own case, we find it deem and appropriate in the interest of justice to remand this matter also to the file of the ld. A.O to re-adjudicate as per law based on the outcome of the decision in the earlier matters of the assessee as has been examined in the preceding paras. Also both the provisions i.e. sec. 12AA and sec. 10(26BBB) of the Act are independent and separate provisions having been incorporated in the Act for specific purposes. There is no bar cast on one provision by the other. Meaning thereby, the corporation may be registered u/s 12AA and at the same time it can apply for exemption u/s 10(26BBB) of the Act but both the issues have to be examined independently on the basis of specific requirement and eligibility of the said provisions
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