IN HIGH COURT OF KERALA AT ERNAKULAM PRESENT HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, 11TH DAY OF OCTOBER 2019 / 19TH ASWINA, 1941 WP(C).No.8372 OF 2019(V) PETITIONER: INDIAN INSTITUTE OF MANAGEMENT IIM CAMPUS P.O, KUNNAMANGALAM, KOZHIKODE 673570, BY LT. COL M. JULIUS GEORGE(RETD), CHIEF ADMINISTRATIVE OFFICER. BY ADVS. SRI.P.RAGHUNATH SRI.PREMJIT NAGENDRAN RESPONDENTS: 1 DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) 2ND FLOOR, SAN JUAN TOWERS, I.S PRESS ROAD, KOCHI-682018. 2 COMMISSIONER OF INCOME TAX(EXEMPTIONS) 2ND FLOOR, SAN JUAN TOWERS, I.S. PRESS ROAD, KOCHI- 682018. BY ADV.SRI.JOSE JOSEPH THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11.10.2019, COURT ON SAME DAY DELIVERED FOLLOWING: WP(C).No.8372 OF 2019(V) 2 JUDGMENT challenge in Writ Petition is against Ext.P2 order of assessment passed in relation to petitioner for assessment year 2016-2017 under Income Tax Act. main contention urged by learned counsel for petitioner is that while passing Ext.P2 assessment order, assessing authority did not consider issue of exemption claimed by petitioner in its true legal perspective. It is pointed out that while exemption claimed under Section 10(23)C of Income Tax Act had been rejected, on ground that, petitioner did not produce approval for purposes of grant of exemption, such approval is not contemplated in terms of express provisions of Section 10(23)C (iiiab). It is stated that as per said provision, income of any University or other educational institution existing solely for educational purposes and not for purposes of profit and wholly or substantially financed by Government has to be excluded while computing total income of previous year of assessee. This aspect is not seen considered in Ext.P2 assessment order. Similarly, it is pointed out that Assessing Officer did not also consider impact of first proviso to Section 12 of Income Tax Act, WP(C).No.8372 OF 2019(V) 3 which clearly made provisions of Sections 11 and 12 applicable to income received by assessee who had been granted registration under Section 12AA, in any assessment year for which assessment proceedings were pending before Assessing Officer as on date of obtaining such registration. It is stated that registration was obtained in assessment year 2017-2018, and therefore, by virtue of proviso benefit of registration ought to have been extended even for assessment year 2016-2017 for which assessment proceedings were pending at time of grant of registration. 2. I have heard learned counsel appearing for petitioner and also learned Standing counsel appearing for respondents. On consideration of facts and circumstances of case and submissions made across bar, I find force in contention of learned counsel for petitioner that Ext.P2 assessment order does not reflect application of mind while dealing with claim for exemption both under Section 12A of Income Tax Act as also under Section 10(23) C of Act. perusal of reasoning of Assessing Officer would clearly indicate that WP(C).No.8372 OF 2019(V) 4 he has completely overlooked impact of first proviso to Section 12 of Income Tax Act as also fact that proviso to Section 10(23)C had no application to case that was covered by Section 10(23)C (iiiab) under which category, petitioner had claimed exemption. Under such circumstances, I am of view that Ext.P2 assessment order cannot be legally sustained, and same is accordingly quashed. 1 st respondent is directed to complete assessment pertaining to petitioner for said assessment year afresh, after hearing petitioner. To enable 1 st respondent to do so, I direct petitioner to appear before 1st respondent at his office at 11 am on 04.11.2019. 1st respondent shall pass fresh orders of assessment as directed within month thereafter. Sd/- A.K.JAYASANKARAN NAMBIAR JUDGE mns WP(C).No.8372 OF 2019(V) 5 APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1 PHOTOCOPY OF ORDER DATED 28.07.2017 U/S. 12AA OF ACT ISSUED BY SECOND RESPONDENT. EXHIBIT P2 PHOTOCOPY OF ASSESSMENT ORDER FOR 2016.17 DATED 18.12.2017. EXHIBIT P3 PHOTOCOPY OF APPLICATION U/S. 154 OF ACT DATED 17.01.2019. EXHIBIT P4 PHOTOCOPY OF ORDER DATED 04.03.2019 ON EXT P3 APPLICATION. RESPONDENTS EXHIBITS:NIL //TRUE COPY// P.A TO JUDGE Indian Institute of Management v. Deputy Commissioner of Income-tax (Exemptions), Kochi / Commissioner of Income-tax (Exemptions), Kochi