COMMISSIONER OF INCOME TAX AND THE ASSISTANT COMMISSIONER OF INCOME TAX Vs. PEOPLES EDUCATION SOCIETY

JUDGEMENT

(1.) THE Revenue is in appeal challenging the order passed by the Income Tax Appellate tribunal in ITA No. 1217/Bang/2003 dated 14.1.2004 whereunder the Tribunal confirmed the order passed by the first appellate authority. The assessee filed return of income on 15.2.2002 declaring nil income and claimed exemption under Section 10(23C)(vi) of the Income Tax Act, 1961 (in short the Act').

(2.) THE assessing officer, on verification of the record found that assessee is not recognised under Section 10(23C)(vi) of the Act since assessee's application for recognition under Section 10(23C)(vi) filed on 21.9.99 was pending before the authorities and rejected the claim of the assessee for grant of exemption under Section 10(23C)(vi) for the assessment year 2000 -01 of the Act and the said income was also brought to tax under the Act. The assessing officer also noted in the said Assessment order with regard to claim of the assessee regarding registration under Section 12A which reads thus: (1) The provisions of Section 11 and Section 12 shall not apply in relation to income of any trust or institution unless the following conditions are fulfilled, namely: (a) the person in receipt of income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the 1st day of July, 1973 or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under Section 12AA.

(3.) WE have heard Sri. K.V. Aravind for Sri. M.V. Seshachala and Ms. Nitya, learned Counsel appearing for appellant and respondent respectively.