BARKATULLAH VISHWAVIDYALAYA,BHOPAL V. ITO NFAC, DELHI

ITA 871/IND/2024

AI Insights

The case involves Barkatullah Vishwavidyalaya, a charitable institution, which appealed against the orders of the lower tax authorities denying them exemption under sections 11 and 12 of the Income Tax Act for the Assessment Year 2019-20. The denial was based on the rejection of their application for registration under section 10(23C)(vi). The Tribunal clarified that the exemption under sections 11 and 12 is independent of the registration under section 10(23C)(vi) and is contingent upon the registration under section 12AA, which the assessee possessed. The Tribunal set aside the decisions of the lower authorities and directed the AO to allow the exemption after necessary verification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705569 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SHRIANOOPSINGH
• Assessee Lawyers: SHRIS.S.DESHPANDE; STATINGTHATTHE
• Keywords: Set aside; Charitable institution
• Section: 143(3); 12AA

Judgement Text

"Page 1 of 6 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.871/Ind/2024 Assessment Year:2019-20 Barkatullah Vishwavidyalaya, Hoshangabad Road, Bhopal बनाम/ Vs. ITO NFAC (Assessee/Appellant) (Revenue/Respondent) PAN: AAAJB0916A Assessee by Shri S.S. Deshpande, AR Revenue by Shri Anoop Singh, CIT-DR Date of Hearing 03.07.2025 Date of Pronouncement 04.07.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first appeal dated 06.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 21.09.2021 passed by learned NFAC, Delhi [“AO”] u/s 143(3) r.w.s. 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2019-20, the assessee has filed this appeal on the grounds as mentioned in Form No. 36 (Appeal Memo). 2. The controversy in present case is very limited and does not require much elaboration of facts. The assessee is a charitable institution registered Barkatullah Vishwavidyalaya ITA No. 871/Ind/2024 – AY 2019-20 Page 2 of 6 by CIT (Exemption), Bhopal vide order dated 17.06.2019 u/s 12AA of the Act from AY 2019-20 under consideration, copy of first page of registration certificate is scanned and re-produced below: Barkatullah Vishwavidyalaya ITA No. 871/Ind/2024 – AY 2019-20 Page 3 of 6 3. On the strength of above registration granted by Income-tax Department, which is in force and not revoked/cancelled, the assessee is entitled to exemption u/s 11/12 of the Act. Accordingly, for AY 2019-20, the assessee claimed exemption u/s 11/12 in the return of income, copy of first page of computation of total income is scanned and re-produced below: Barkatullah Vishwavidyalaya ITA No. 871/Ind/2024 – AY 2019-20 Page 4 of 6 Barkatullah Vishwavidyalaya ITA No. 871/Ind/2024 – AY 2019-20 Page 5 of 6 4. However, while framing assessment u/s 143(3), the AO has denied exemption claimed by assessee on the footing that the assessee’s application for registration u/s 10(23C)(vi) had been rejected by authorities. During first-appeal, the CIT(A) upheld AO’s order. Now, the assessee has come in this appeal before us assailing the orders of lower authorities. 5. We have heard learned Representatives of both sides and carefully considered the orders of lower-authorities. On a careful consideration of the provisions of Act, we find that there are two separate exemption provisions of section 11/12 and 10(23C)(vi); there are two separate conditions/ stipulations in law for availing those exemptions; and moreover there are two separate registrations involved for respective exemptions. The exemption u/s 11/12 is enabled by registration u/s 12AA. In present case, the assessee is holding a valid registration u/s 12AA which entitles the assessee to claim exemption u/s 11/12. Furthermore, the assessee has availed exemption u/s 11/12 in the return of income and not u/s 10(23C)(vi). Under the scheme of Act, unless the registration u/s 12AA is revoked/ cancelled, the authorities cannot deny exemption u/s 11/12 to assessee. Therefore, in this situation, the lower authorities are clearly wrong in denying exemption u/s 11/12 claimed by assessee by stating that the assessee’s application for registration u/s 10(23C)(vi) had been rejected. We therefore set aside the orders of lower-authorities and direct the AO to allow exemption u/s 11/12 to assessee after necessary verification, if any. Barkatullah Vishwavidyalaya ITA No. 871/Ind/2024 – AY 2019-20 Page 6 of 6 6. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 04/07/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 04/07/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore "