Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 217 - ITAT AHMEDABADRevision u/s 263 - eligibility to Exemption u/s 11 - AO had not properly assessed the income, for the reason that the assessee had been granted excess exemption of 15% of its income on grants from state government - as per AO had not properly assessed the income, for the reason that the assessee had been granted excess exemption of 15% of its income on grants from state government assessee contending that since it was substantially financed by the state its income in any case was exempt u/s 10(23C)(iiiab) of the Act and that alternatively even after denying exemption of 15% of the grants of ₹ 4.72 crores, the assessee was still eligible for exemption of its entire income u/s 11 of the Act on account of application of its income for capital purposes. - HELD THAT:- assessee contending that since it was substantially financed by the state its income in any case was exempt u/s 10(23C)(iiiab) of the Act and that alternatively even after denying exemption of 15% of the grants of ₹ 4.72 crores, the assessee was still eligible for exemption of its entire income u/s 11 of the Act on account of application of its income for capital purposes. Alternative contentions of the assessee that even without claiming 15% exemption of its income from Government grants, it was entitled to exemption u/s. 11 of the Act after taking into account the amounts utilized for capital purposes - CIT(E), we find has rejected this contention of the assessee by stating that the assessee's claim of utilization of its income in capital asssets tantamounts to revising its return and therefore the contention is not acceptable. We are not in agreement with the same. The assesse’s claim of exemption of its entire income has remained unchanged and unrevised. What has only changed is the basis of the claim that too without foregoing its original basis and as an alternate only and that too when confronted with the prospect of being denied exemption of 15% of Govt. grants as originally claimed. The same does not tantamount to revising its return by any chance. Also if the alternate basis of claim of the assessee was as per law the assessment order could not be held erroneous in allowing benefit of exemption u/s 11 to the assessee. Without any finding to the contrary the Ld.CIT(E) we hold had erred in finding the assessment order erroneous on this count. Thus it is abundantly clear that there was no basis with the Ld. CIT(E) at all for arrive at his finding that the assessment order passed in the present case was in error by allowing the assessee exemption of 15% of its income from Government grants. We therefore hold that the Ld.CIT(E) has failed to find any error causing prejudice to the Revenue in the present case - Decided in favour of assessee.
|