Brief of the case:
The ITAT Chandigarh in the case of Mahabir Educational Welfare Society vs. DCIT held that for claiming exemption u/s 10)(23C)(iiiad) filling of return of income as per the law applicable for AY 2005-06 and 2006-07 was not mandatory as the gross receipts not exceeded Rs. 1 crore and therefore, reopening the assessment alleging the non-furnishing of return as a reason to believe that income has escaped assessment is not valid in law.
Facts of the case:
- The assessee an educational society applied for registration u/s 12AA. The Assessing Officer noted from the financial statements filed along with application for registration that the assessee was earning profit consistently but never filed return of income.
- AO thus, reopened the case u/s 148 after obtaining approval of Addl. CIT. In response to the notice under section 148, the assessee filed its return of income for assessment year under appeals on 07.02.2013 and 19.09.2012 declaring ‘Nil’ income.
- The AO required books of accounts and other necessary information relied on by the assessee in preparation of return of income, but the assessee failed to submit the same. Therefore, on the basis of information available on the record AO completed the assessment to the best of his judgement and assessed the income of various years from AY 2005-06 and AY 2006-07.
- But assessee claimed that it was not liable to file return because of exemption available u/s 10(23C) (iiiad).Thus, reopening was not valid. Aggrieved, by the order of AO, it filed an appeal before CIT (A).
- The CIT(A) also rejected the claim and held that since no books of account have been produced along with vouchers and justified the action of the Assessing Officer in denying exempt ion under sect ion 10(23C) (iiiad) of the Act .
- Aggrieved by the order of CIT(A) , assessee is in appeal before ITAT.
Contention of the Assessee:
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