TMI Blog2017 (8) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort the Act ). The assessee was running the following institutions : 1. PKD Matric Higher Secondary School 2. Krishnasamy Matriculation School 3. PKD DT. Ed. Education College 4. PKD College of Education 5. PKD School Hostel 4. The receipts and income from above institutions, during the relevant previous year, were as under : Name of the institution Total receipts (Rs.) Income (Rs.) 1. PKD Matric Higher Secondary School 2,59,99,053 75,72,480 2. Krishnasamy Matriculation School 15,53,868 (-) 1,60,219 3. PKD College of Education 40,90,657 2,23,130 4. PKD DT.Ed. Education College 24,64,463 6,33,369 5. PKD School Hostel 57,72,478 19,13,022 Total 3,98,80,519 1,01,81,782 Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot impressed by the above argument. According to him, though the assessee had filed an application for approval under section 10(23C)(vi) of the Act on October 25, 2006 for the assessment year 2006- 07, it had not followed up on such application. The learned Commissioner of Income-tax (Appeals) also noted that the assessee never sought registration under section 12A of the Act for claiming exemption under section 11 of the Act as well. Further, as per the learned Commissioner of Income-tax (Appeals), the Chief Commissioner of Income-tax had vide order dated June 24, 2013 rejected the application filed by the assessee for approval under section 10(23C)(vi) of the Act. He thus confirmed the order of the Assessing Officer. 6. Now before us, the learned authorised representative strongly assailing the orders of the lower authorities, submitted that the assessee had obtained registration under section 12AA of the Act on July 28, 2015. Copy of the order of the Commissioner of Income-tax (Exemptions), Chennai in this regard was placed on record. According to him, by virtue of the first proviso to section 12A(2) of the Act, a registration granted would apply for all the assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act granted to it by the Chief Commissioner of Income-tax on July 28, 2015 was relevant for the impugned assessment year also, it is required to have a look at sub-section (2) of section 12A of the Act, which has been relied on by the learned authorised representative : 12A.(2) Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made : Provided that where registration has been granted to the trust or institution under section 12AA, then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year : Provided further that no action under section 147 shall be taken by the Assessing Officer in case of such trust or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucational institution can be treated as exempt under section 10(23C) of the Act are given in sub- clauses (iiiad) and (vi). Both these sub-clauses are reproduced hereunder : 10.(23C) any income received by any person on behalf of-. . . (iiiad) any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed ; or. . . (vi) any university or other educational institution existing solely for educational purposes and not for purposes of profit, other than those mentioned in sub-clause (iiiab) or sub-clause (iiiad) and which may be approved by the prescribed authority ; 10. What is exempt is income received by a person on behalf of a university or other educational institution. Here, the income has been received by the assessee on behalf of five different educational institutions, which have been listed by us at paragraph 4 above. Blanket exemption is available where receipts of such university or educational institution do not exceed the amount of annual receipt which ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Krishnasamy Matriculation School - 1,43,198 1,55,126 5. P. K. D. College of Education 8,74,255 44,38,485 6. P. K. D. T. Ed. College 11,31,780 32,02,058 7. Disha School - 13,59,563 1,51,17,971 1,24,67,097 6,88,79,235 We are of the opinion that the directions given by us for the assessment year 2010-11 at paragraph 10 above will squarely applicable here also. Similar directions are given for the assessment year 2012-13 also. 14. The appeal of the assessee is treated as partly allowed for statistical purposes. 15. Now, we take up appeal of the assessee in I. T. A. No.1819/Mds/2016. 16. In this appeal, the assessee assails the rejection of its review petition against the denial of approval sought under section 10(23C)(vi) of the Act. 17. Facts apropos are that the assessee had filed an application in Form 56D on September 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed authority under sub-clauses (vi) and (via) of section 10(23C) of the Act was made appealable, was introduced by the Finance Act, 2015 with effect from June 1, 2015. Prior to that, the list of orders which were appealable before the Appellate Tribunal, mentioned in section 253(1) of the Act did not have in it an order passed under sub-clauses (vi) and (via) of section 10(23C) of the Act. The contention of the learned authorised representative is that the review petition filed by the assessee before the learned Chief Commissioner of Income-tax was only an application for rectification under section 154 of the Act. 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 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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