Institute Management Committee ITI Jhalawar Vs ITO (ITAT Jaipur)
ITAT Jaipur held that denial of exemption u/s. 10(23C)(iiiad) of the Income Tax Act for non-filing of return before due date prescribed u/s. 139(1) not justified since aggregate annual receipts doesn’t exceed specified limit. Accordingly, exemption granted and appeal allowed.
Facts- The issue involved herein is AO denied exemption under section 10(23C)(iiiad) of the Income Tax Act since the return of income for the assessment year was not filed on or before due date specified under section 139(1) of the Income Tax Act. CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- The law as applicable to the assessee says that if the receipt exceeds Rupee one crore and income after giving effect to the provision of section 10(23C(iiiad) the income exceeds the maximum amount which is not chargeable to tax then the present assessee has to file the ITR for the year under consideration. Thus, we are of the considered opinion that the ld.CIT(A) has erred in confirming the denial of exemption u/s. 10(23C)(iiiad) of the Act to the assessee for the impugned assessment year and hence we are setting aside the order of the ld.CIT(A) by allowing the ground no 2 raised by the assessee.
