The Assistant Commissioner of Income Tax (Exemptions), Circle – 1, Bengaluru. Vs. M/s. Karnataka Institute of Diabetology

Parties Involved

Facts Summary

The assessee, M/s. Karnataka Institute of Diabetology, is a registered trust under section 12A of the Income Tax Act and claimed exemption under section 10(23C)(iiiac) for the assessment years 2017-18 and 2018-19. The Assessing Officer (AO) issued a notice stating that the assessee received less than 50% grant from the Government and had not furnished form 10 within the due date, thus not entitling them to exemption under section 11(2). The assessee appealed to the Ld.CIT(A), arguing they are an autonomous body set up and managed by the Government, and had furnished form 10 despite the delay. The Ld.CIT(A) allowed the appeal, holding the assessee eligible for exemption under section 11 and section 10(23C)(iiiac), relying on the Jurisdictional High Court judgment. The revenue then appealed to the Tribunal.…

Legal Issues

• 1. Whether the assessee is eligible for exemption under section 10(23C)(iiiac) of the Act?
• 2. Whether the assessee is entitled to exemption under section 11(2) despite the delay in filing form 10?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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