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2015 (6) TMI 254 - ITAT CHANDIGARHEntitlement to exemption under section 10(23C)(iv) - AO as per the section 2(15) treated the assessee as business entity - printing and publication of newspaper. - CIT(A) allowed the exemption - Held that:- assessee has definitely earned profits - even if the approval has been granted, income can still be assessed if it is found that the proviso to the first provision of clause (15) of section 2 is applicable. Further, the assessee itself has entertained doubts about its exemption and filed a revised return, which itself shows that the assessee was not eligible for exemption. If a person is eligible for exemption under clause (23C)(iv) of section 10 or is registered under section 12AA or is a charitable organisation then such persons could not be called employer. If the assessee was clear in its mind that it is entitled for exemption under clause (23C)(iv) of section 10, then there was no need for assessee to treat itself as employer and file return under the fringe benefits tax provisions. In regard to these facts, learned counsel gave only evasive reply and we are not satisfied with the same as assessee trust is a large organisation employing lot of qualified people including chartered accountants and is being advised by the best of advocates, then how can it make such a slip of filing the return under fringe benefits tax on the one hand and claiming exemption under section 10(23C) on the other hand ? This order has been passed though the Assessing Officer himself was in doubt about the exemption. It seems that the Assessing Officer was not aware of the last proviso to section 10(23C) that notification itself will not grant exemption. Therefore, it is a not factual position. It is a legal issue as we have seen in the abovenoted paras, the law is very clear and the assessee is not entitled for exemption, therefore, the principle of consistency cannot be followed. - Decided in favour of revenue.
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