ACIT Vs Rajiv Gandhi University of Health Sciences (ITAT Bangalore)
ITAT Bangalore dismisses revenue appeal against Rajiv Gandhi University: upholds section 11 exemption as 12A not cancelled & applies CBDT circular on low tax effect to reject addition based on belated revised return
ITAT Bangalore dismisses revenue appeal against Rajiv Gandhi University: upholds section 11 exemption as 12A not cancelled & applies CBDT circular on low tax effect to reject addition based on belated revised return
Revenue has challenged the deletion of income amounting to Rs.4,42,543/- not offered for taxation in the original return of Income but offered for taxation in revised return which is belated & hence not a valid return. However, since the tax effect much below the monetary threshold of Rs. 60 lakhs prescribed in CBDT Circular 9/2024 dt 17.09.2024, following Delhi HC ruling in CIT v. Delhi Race Club Ltd, Tribunal held that CBDT circulars apply even to pending cases. Appeal dismissed as not maintainable due to low tax effect.
Revenue had also contested that CIT(A) erred in allowing assessee’s claim of exemption u/s 11(2) although the 12A registration granted to the assessee had been cancelled by the DIT(E) vide order u/s12AA(3). Assessee submitted that Registration u/s 12A of the assessee was not cancelled by the Department & if cancelled, the due process including the service of the cancellation Order was not followed. Tribunal noted that although AO mentioned e-mail from the ld. DCIT(Exemptions), Bangalore stating the fact that as per the records, the CIT(E) has not withdrawn the 12A registration in the assessment order, the computation sheet reflects a 15% benefit. Hence Tribunal dismissed this ground also.
