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2017 (8) TMI 316 - AT - Income TaxNon grant of the registration under section 12AA - whether section 10(23C) of the Act has been correctly applied in the case of the assessee? - Held that:- Admittedly, the prescribed limit was ₹ 1 crore for the impugned assessment year. If we take each of the educational institution separately, only in the case of PKD Matric Higher Secondary School, the receipt has exceeded ₹ 1 crore. The annual receipts of all other institutions were less than the threshold amount of ₹ 1 crore. In our opinion, the lower authorities had not applied section 10(23C) of the Act in respect of these educational institutions, which has gross receipts less than ₹ 1 crore. The question whether each educational institution could be considered separately for applying the threshold annual receipt of ₹ 1 crore, which was applicable for the impugned assessment year, has not been considered by any of the lower authorities in the proper perspective. The matter therefore, requires a fresh look by the Assessing Officer. Though the assessee is not eligible for exemption under section 11 of the Act, the question whether it could claim exemption under section 10(23C) of the Act in the case of these institutions which had gross receipts below the threshold limit requires a fresh look. Therefore, we set aside the orders of the lower authorities and remit the issue regarding application of section 10(23C) of the Act back to the Assessing Officer for consideration afresh, in accordance with law. Rectification of mistake - application for sec 10(23C)(vi) being rejected for non-mentioning of non-profit nature of the institutions run by the assessee in its trust deed - Held that:- Even if we presume that this is only an application for rectification of mistake, such mistake which can be rectified under section 154 of the Act, is one which is glaring and apparent. The order dated June 24, 2013 passed under section 10(23C)(vi) of the Act, on which the review petition was filed, had specifically stated that the application was being rejected for non-mentioning of non-profit nature of the institutions run by the assessee in its trust deed. We cannot say that no reason was cited by the learned Chief Commissioner of Income-tax or the reason cited was perverse. Thus the order was not, in our opinion, amenable to a rectification proceeding under section 154 of the Act. There was no mistake which was glaring enough, which could have been rectified under section 154 of the Act. Viewed in any manner, we are of the opinion that the appeal of the assessee has no merits.
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