9911796707
TMI Blog2025 (3) TMI 1418X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT (Appeals) has erred in sustaining the denial of exemption of Rs. 7743697/- made by CPC, Bangaluru vide intimation u/s 143(1) of the IT Act, 1961 dt 08.03.2023. 2. That under the facts and circumstances of the case, Ld. CIT (Appeals) has erred in not considering the assessee's reply dt. 23.03.2023 filed before the CPC Bangaluru in a right perspective that the income of the assessee's trust is also exempt u/s 10(23C) (iiiad) of the I.T Act, 1961. 3. That under the facts and circumstances of the case, Ld. CIT (Appeals) has also erred in observing that A.O., CPC had no power to entertain a fresh claim or change its stand. In fact, fresh claim or change its stand on the basis of facts of the case is permissible under the law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder for approval on Form No. 10AC dt. 08.07.2024 w.e.f. A.Y. 2022-23 to 2026-27. Thus, the appellant is entitled for exemption as claimed at Rs. 77,43,697/- in its return of income." 3. The relevant facts giving rise to this appeal are that the appellant assessee, a Society registered under the Society Registered Act, 1860, running an educational institution; namely, 'Niranjan Institute of Education Technology, filed its Income Tax Return (hereinafter, the 'ITR') of the relevant year on 20th October, 2022 declaring Nil income. During the course of processing of the said ITR under section 143(1) of the Income Tax Act, 1961 (hereinafter, the 'Act'), the Assessing officer, (CPC) (hereinafter, the 'AO') show caused the assessee proposing adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Audit Report in Form 108 was filed by the appellant on 20/02/2022 and exemption u/s 11 of the Act was claimed. The claim made by the appellant for A.Y. 2021-22 has also been disallowed by the AO, CPC. Hence, it is clear that this is not the first year that the return of income along with Audit Report in Form 10B has been filed claiming exemption u/s. 11 of the Act. The contention of the appellant that the claim u/s. 11 of the Act was inadvertently made thus fails. The appellant did not file its option in Form 10AC for opting for exemption u/s 10(230) (iad) of the Act. Form 10AC is essential for claiming exemption under Sections 11 to 12 and 10(23C) of the Act. The appellant thus made a fresh claim before the AO, CPC in response to the prio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order dated 08.07.2024. Accordingly, he prayed that the entire income of the relevant year, being derived from educational institution, was exempted as the approval under section 10(23C)(i) rws 10(23C)(vi) of the Act granted vide order dated 08.07.2024 was with effect from AY 2022- 23 to 2026-27. Therefore, it was contended that the entire income of the relevant year having derived from the educational institution was fully exempted even after the said adjustment of Rs. 77,43,697/- as the tax could not be levied on the exempted income. 5. The Ld. Commissioner of Income Tax-Departmental Representative (hereinafter, the 'CIT-DR'), placing reliance on the above extracted para of the impugned appellate order submitted that the said appeal de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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