Case Law Details
Chhattisgarh Rajya Open School Madhyamik Siksha Mandal Vs DCIT (ITAT Raipur)
ITAT Raipur held that assessee-society not being wholly and substantially financed by the government is not entitled for claiming exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961.
Facts- The assessee society, which was established with the Direction of the Education Department of the Chhattisgarh Government had filed its return of income in the status of an AOP/BOI, declaring an income of Rs. Nil. The case of the assessee society was thereafter selected for scrutiny assessment u/s. 143(2) of the Act.
During assessment proceedings, AO observed that the assessee had claimed exemption u/s. 10(23C)(iiiab) of the Act. On a perusal of the details, it was observed by the AO that the assessee society had a total gross receipt of Rs.24.04 crore (approx.) during the year under consideration. Observing, that the assessee society was not in receipt of any government grant, AO declined the exemption u/s. 10(23C)(iiiab) of the Act. CIT(A) upheld the action of AO. Being aggrieved, the present appeal is filed.
Conclusion- Held that the AO/CIT(Exemption) remained under a statutory obligation to have guided the assessee society, which admittedly not being wholly and substantially financed by the government, was disentitled from raising a claim for exemption u/s.10(23C)(iiiab) of the Act, to have applied for registration and raised a claim of exemption u/s.10(23C)(vi) of the Act, we are of the considered view that as the said issue does not emanate from the orders of the lower authorities, therefore, we refrain from dealing with the same.
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