2012 (8) TMI 1058 - HC - Income Tax

Summary

Issues involved:
The judgment involves the denial of exemption u/s 10(23C)(vi) of the Income Tax Act, 1961 to a registered society running educational institutions. The appeals were filed against the order of the Income Tax Appellate Tribunal, Jaipur Bench 'A', which dismissed the appeals of the revenue.

Facts of the case:
The respondent assessee, a registered society running educational institutions, was denied exemption u/s 10(23C)(vi) by the Assessing Officer. The Commissioner of Income Tax (Appeals) allowed the exemption, which was challenged by the revenue in separate appeals before the Income Tax Appellate Tribunal. The Tribunal affirmed the order of the Commissioner of Income Tax (Appeals) granting the exemption to the assessee.

Arguments and Decision:
Initially, the appellant argued that the orders of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal were incorrect. However, it was pointed out that the Central Board of Direct Taxes had granted exemption to the assessee, making the appellant agree that the assessee was entitled to the exemption. The order of the Central Board of Direct Taxes dated 16th March, 2007, specified conditions for the exemption u/s 10(23C)(vi) for the institution.

Conclusion:
Based on the order of the Central Board of Direct Taxes, the assessee was held entitled to the exemption u/s 10(23C)(vi) of the Income Tax Act, 1961. The Tribunal had already upheld the order of the Commissioner of Income Tax (Appeals) granting the exemption. Consequently, the appeals were dismissed, and no costs were awarded. The Registry was directed to place a copy of the order in the connected appeal.