2012 (3) TMI 530 - AT - Income Tax

Summary

Issues involved: Appeal against order of Commissioner of Income-tax(Appeals) on relief granted to assessee for failure to obtain approval u/s 10(23)(c)(via) of the Act.

Summary:
The appeal was filed by the assessee against the order of the Commissioner of Income-tax(Appeals) for the assessment year 2003-04. The main issue was regarding the relief granted to the assessee despite the failure to obtain approval under section 10(23)(c)(via) of the Act, which is mandatory. The counsel for the assessee requested that the issue be set aside to the file of the assessing officer based on Tribunal directions in a previous case. The Departmental Representative, however, relied on the assessing officer's order.

Upon hearing both parties, it was noted that in a previous case for the assessment year 2006-07, a similar issue was set aside to the assessing officer's file by the Tribunal. This decision was based on earlier Tribunal orders in other cases. The relevant portions of the previous order were reproduced for reference. Following the precedent set by the Tribunal in previous cases, the current issue was also set aside to the assessing officer for fresh consideration. The Tribunal directed the assessing officer to examine whether the assessee was collecting capitation fees and to decide the issue accordingly.

Therefore, the Tribunal allowed the Revenue's appeal for statistical purposes and set aside the issue to the assessing officer with directions for reevaluation. The order was pronounced on 7.3.2012.