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TMI Blog2019 (6) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of application for exemption u/s 10(23C) of the Act. The assessee had filed Form 56D on 21.09.2017 seeking exemption u/s 10(23C) of the Income Tax Act, 1961 (in short 'Act') from the A.Y.2017-18 onwards. Subsequently the Ld.CIT(E) sought for certain details and on the date of hearing there was no response from the assessee. Therefore, the Ld.CIT(E) decided the application of the assessee in Form No.56D ex-parte treating the application as non-est. 3. In the instant case, the assessee sought exemption u/s 10(23C) originally vide application dated 26.09.2014 which was rejected by the Ld.CCIT vide his order dated 30.09.2015. The Ld.CCIT had rejected the application of the assessee, since, the objects of the assessee include non-educatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or Chief Commissioner or Director General, as the case may be, granted before the first day of December 2006 shall at any one time have affect for a period of not exceeding three assessment years" The CBDT issued clarificatory circular No. 7/2010 dated 27.10.2010. Thus, after 2006 amendment, assessee has to apply only, once for getting approval u/s. 10(23c)(v). In the case of the assessee, the assessee had applied for approval u/s. 10(23C)(vi) and the CCIT, Visakhapatnam vide his order dated 30.09.2015 rejected the application. Assessee filed an appeal against the said order and the Hon'ble ITAT has upheld the order of the CCIT, Visakhapatnam as mentioned in earlier part Therefore, the application filed by the assessee u/s. 10(23C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amended and the assessee made the revised application, the CIT(E) is not permitted to reject the application as non-est and has to decide the case on merits, since, the objects are amended. Accordingly, the Ld.AR requested to set aside the order of the Ld.CIT(E) and grant exemption u/s 10(23C) of the Act. 6. On the other hand, the Ld.DR argued that the assessee has submitted the application originally in 2014 which was rejected by the CCIT vide order dated 30.09.2015 and confirmed by the Hon'ble ITAT, thereby, the orders of the CCIT had reached finality. Once the application is made by the assessee seeking grant of approval u/s 10(23C) is reached finality, the assessee is barred from making any further application for 3 years as per Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) To establish schools in Andhra Pradesh and to promote literacy (i) To impart education without profit motive. (ii) To provide facilities for indoor and outdoor gamets for the recreation of members (ii) To establish schools and colleges in Andhra Pradesh for imparting education (iii) --- (iii) To provide facilities for indoor and outdoor games for the recreation of pupils. It is observed from the above, that the assessee had duly amended the objects and after amending the objects, the objects of the society are solely for the purpose of education and the assessee qualifies for grant of approval u/s 10(23C) of the Act. The question before us is whether the assessee is permitted to make a fresh application, once the original applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r exemption and would be entitled for the grant of approval and treating the application of the assessee as non-est is unjustifiable. Hence, we hold that the application of the assessee is valid and the Ld.CIT(E) must consider the grant of exemption u/s 10(23C) on merits. Accordingly, we set aside the order of the Ld.CIT(E) and remit the matter back to the file of the CIT(E) with a direction to consider the application of the assessee on merits and decide the issue afresh. It is needless to say that the CIT(E) should give sufficient opportunity to the assessee before deciding the application. Accordingly, appeal of the assessee is allowed for statistical purpose. 8. In the result, appeal of the assessee is allowed for statistical purpose. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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