Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 779 - ITAT AMRITSARExemption 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.
|