Gujarat Medical Education and Research Society Vs CIT (Exemption) (ITAT Ahmedabad)
ITAT Ahmedabad held that disallowance of exemption under section 10(23C)(iiiab) of the Income Tax Act by PCIT in absence of any supporting documents/ materials justifiable. Accordingly, appeal dismissed.
Facts- AO made certain additions and disallowance under reassessment proceedings under section 148 of the Income Tax Act.
Subsequently the Principal Ld. CIT(Appeals), upon reviewing the assessment records, noted that the assessee had claimed an exemption of Rs. 718,87,11,813 u/s. 10(23C)(iiiab) of the Income Tax Act, but failed to provide the necessary supporting documentation or justification for this claim during the course of assessment proceedings. Principal CIT observed that AO, during the course of assessment proceedings had specifically taken note of the fact that assessee had claimed exemption of Rs. 718,87,11,813 under Section 10(23C)(iiiab) and had also noted in the assessment order that the necessary details in support of the aforesaid exemption were not filed by the assessee during the course of assessment proceedings. However, despite the specific finding/noting is in the assessment order to the effect that the assessee did not file the necessary details/supporting documents in support of the aforesaid claim of exemption, the assessing officer still did not make any disallowance with regards to the claim of aforesaid exemption u/s. 10(23C)(iiiab) of the Act claimed by the assessee, its return filed in response to notice u/s. 148 of the Act. Accordingly, Principal CIT held that there was an under-assessment of income amounting to Rs. 718,87,11,813, as this amount had not been included in the total income.
