DCIT Vs Maharashtra State Board of Secondary & Higher Secondary Education (ITAT Pune)
ITAT Pune held that denial of exemption under section 10(23C)(iv) of the Income Tax Act merely because of inadvertent error of claiming exemption u/s. 10(46) instead of 10(23C)(iv) is not justifiable. Accordingly, exemption u/s. 10(23C)(iv) granted.
Facts- The assessee is an artificial juridical person and is an autonomous statutory body established in 1965 by Special Act in Maharashtra State Legislative Assembly under the provisions of the Maharashtra Act No.41 of 1965 i.e. Maharashtra Secondary and Higher Secondary Education Boards Act, 1965. It filed its return of income on 23.11.2022 declaring Nil income after claiming exemption u/s 10(46) of the Income Tax Act, 1961. The assessee has filed audit report in Form No.10B on 31.03.2024 along with copy of audited Income & Expenditure statement for financial year ending as on 31.03.2022. The CPC vide intimation dated 28.07.2023 rejected the claim of deduction u/s 10(46) of the Act. Addl / JCIT(A) allowed the claim of deduction u/s 10(23C)(iv) of the Act. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the assessee has already been granted approval u/s 10(23C)(iv) of the Act for assessment years 2022-23 to 2026-27, therefore, merely because there was an inadvertent error on the part of the assessee by claiming exemption u/s 10(46) instead of u/s 10(23C)(iv), the assessee could not be deprived of the legitimate claim. We, therefore, we do not find any infirmity in the order of the Ld. Addl / JCIT(A) in granting exemption u/s 10(23C)(iv) of the Act. We, therefore, uphold the same and the grounds raised by the Revenue are dismissed.
