Shree Shantanu Vidhyapeeth Society Vs ITO (ITAT Indore)
ITAT Indore held that Proviso to section 12A(2) was very much available for AY 2018-19. Thus, the assessee is eligible to exemption u/s 11/12 on the basis of Proviso to section 12A(2). Accordingly, appeal is allowed.
Facts- The assessee is a society registered in the State of Madhya Pradesh, engaged in charitable purpose of advancing education through a school named “Oxford Academy School” and a college named “Oxford International College”. For AY 2018-19 under consideration, the assessee filed its return of income on 30.03.2019 u/s 139(4C) of the Act declaring income of Rs. 3,95,65,648/-; claiming exemption of Rs. 3,95,65,648/- u/s 10(23C)(iiiad) and thus offering taxable/total income of Rs. Nil. The case of assessee was selected for scrutiny assessment. Consequently, AO didn’t grant exemption claimed by assessee u/s. 11/12. CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the Proviso to section 12A(2) was introduced through Finance (No. 2) Act, 2014 w.e.f. 01.10.2014. Subsequently, it was closed from 01.04.2021 due to introduction of new system of registrations u/s 12A/12AB. Therefore, the said Proviso to section 12A(2) was very much available to assessee for AY 2018-19 under consideration in present appeal and the reason assigned by CIT(A) is not valid and fails. Therefore, we hold that the assessee is eligible to exemption u/s 11/12 on the basis of Proviso to section 12A(2) and we direct the AO to allow the same with due verification. However, the claim of exemption u/s 11/12 involves a different type of working based on application and accumulation of income. Therefore, we feel that it would be more appropriate to refer this matter back to Ld. AO who shall give an opportunity to the assessee to provide the necessary information for computation of exemption u/s 11/12. Based on such information, the Ld. AO shall allow exemption to the extent admissible u/s 11/12 to the assessee, after necessary verification.
