The Income Tax Appellate Tribunal (ITAT) Raipur Bench, condoned delayed application for income tax exemption to educational institution under Section 10(23C)(vi) of the Income Tax Act,1961 for the subsequent Assessment Year (AY) 2019-20 not being time barred, but did not condoned it for previous A.Y. 2013-14.
The assessee society Chhattisgarh Rajya Open School, established with the primary object of imparting education by conducting examination for children who could not attend school as a regular students, had filed an application in Form No. 56D with the Commissioner of Income-Tax (Exemption) [CIT(E)] for grant of approval under Section.10(23C)(vi) of the Income Tax Act for A.Y. 2013-14.
The CIT(E) rejected the application stating that the assessee had failed to apply for approval under Section 10(23)(vi) of the Income-tax Act within the stipulated time period, therefore, the application so filed before him was not maintainable.
The assessee being aggrieved with the order of the CIT (A) filed an appeal before the ITAT. The Authorised Representative of the assessee S.R. Rao, submitted to condone the application filed under Section 10(23)(vi) of the Income-tax Act, 1961 on the ground that Form 56D with reference to A.Y. 2013-14, and further contended to treat the application as filed with effect from A.Y.2019-20 in alternate.
S.K Meena appeared as Departmental Representative on behalf of revenue.
The ITAT Bench comprising of Ravish Sood, Judicial Member and Arun Khodpia, Accountant Member observed that filed by the assessee society on 17.12.2018 for approval under Section 10(23C)(vi) of the Income Tax Act for A.Y 2013-14, was required to be filed on or before 30.09.2013.
The delay involved in filing of the application concerned, the Commissioner of Income-Tax (Exemption), was vested with no power under the Act to condone the same, hence the same had rightly been rejected by him.
The Tribunal further observed that it was correct in rejecting the application filed by the assessee under Section 10(23C)(vi) of the Income Tax Act, for the A.Y. 2019-20 as being time barred, but certainly fell in error in not considering the said application for subsequent assessment year, i.e., for the A.Y.2019-20.
Thus, remanded the matter to the file of the CIT (A) and directed to consider the present application filed by the assessee for approval under Setion 10(23C)(vi) of the Income Tax Act as that filed for the succeeding year i.e. A.Y. 2019-20 and onwards.
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