INCOME TAX ACT, 1961

Section 10(23EA)

Exemption under section 10(23EA) - Charitable trust - Validity of the claim raised for the first time before Appellate Authority -

Issue under dispute was whether Tribunal had erred in allowing the exemption to assessee under section 10(23EA), even though the claim was not made by assessee during the filing of return of income but as an alternative at the appellate stage before the Commissioner (Appeals). Further, it was contended that as the assessee-trust had received the benefits under sections 11 to 13, it could not claim the exemption under section 10(23EA). Held: It was not in dispute that necessary facts were already on record to examine the claim of assessee. That being the position, assessee's claim was based on pure interpretation of statute. Therefore, Tribunal was justified in rejecting the Revenue's objection that claim could not be raised for the first time before the Appellate Authority by relying on the decision in CIT v. M/s. Pruthvi Brokers & Shareholders (P) Ltd. (2012) 349 ITR 336 (Bom): 2012 TaxPub(DT) 2671 (Bom-HC). Further, as there is no prohibition in law which would prevent the assessee-trust to claim exemption under section 10(23EA) besides claiming the benefits under sections 11 to 13, Tribunal was justified in allowing the claim of assessee.

Referred:CIT v. M/s. Pruthvi Brokers & Shareholders (P) Ltd. (2012) 349 ITR 336 (Bom): 2012 TaxPub(DT) 2671 (Bom-HC)

REFERRED : National Thermal Power Company Limited v. CIT (1998) 229 ITR 383 (SC): 1998 TaxPub(DT) 0342 (SC)

FAVOUR : In assessee's favour

A.Y. : 2010-11

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