Harda Nagar Bal Vikas Samiti Harda Vs ITO (ITAT Indore)
ITAT Indore held that there is no authority to deny exemption u/s. 10(23C)(vi) for non-filing return since 20th Proviso to section 10(23C) denying exemption for non-filing return u/s. 139(4C) came to statue from AY 2023-2024 only.
Facts- The assessee-society is engaged in educational activity by running two educational institutions. Uptill AY 2016-17, the assessee’s income was fully exempted u/s 10(23C)(iiiad) as the annual receipts of educational institutions did not exceed the prescribed eligibility limit of Rs. 1 crore. However, for AY 2017-18, the annual receipts of educational institutions exceeded the eligibility limit of Rs. 1 crore. CIT(E), vide order 10.08.2018, approved the assessee for being eligible for exemption u/s. 10(23C)(vi) for AY 2017-18. However, AO computed income without giving requested exemption. CIT(A) also dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the amendment in section 10(23C) by way of insertion of 20th proviso prescribing dis-entitlement of exemption u/s 10(23C)(vi) for non-filing of return, is applicable from AY 2023-24 and the same was not applicable to AY 2017-18 under consideration. Therefore, in present case, the lower-authorities are wrong in denying exemption to assessee on the premise of non-filing of return. Needless to mention that the assessee has also filed justification for non-filing of return and the assessee’s justification could not be controverted by department. Therefore, the condition imposed by Ld. CIT(E) for filing of return, as relied by Ld. DR, cannot be said to be acceptable for AY 2017-18 with which are concerned in present appeal.
