2009 (2) TMI 491 - HC - Income Tax

Application u/s 10(23C)(vi) - The rejection of an application under section 10(23C)(vi) of the Income-tax Act had also come up before this Court in the case of Society for Indian Institute of Rural Management v. Chief CIT (S.B.C.W.P. No. 5954/2006 decided on 7-11-2008 - In that case, this Court had remanded the case back to the Chief Commissioner for being decided after going into the merits of the case - In the light of that judgment, this Court remands the case back to the Chief Commissioner with the direction to re-decide the application.

Summary

Issues:
Challenge to rejection of application under section 10(23C)(vi) of the Income-tax Act.

Analysis:
The petitioner, a registered Society, challenged the order rejecting their application for income-tax exemption under section 10(23C)(vi) of the Income-tax Act. The petitioner contended that the assessment order passed by the Assessing Officer was subsequently set aside by the Income-tax Appellate Tribunal, thus urging reconsideration for exemption. On the other hand, the revenue's counsel supported the rejection, stating that the Commissioner correctly applied his mind to the facts. Notably, a similar case had been remanded back to the Chief Commissioner for a fresh decision, emphasizing a thorough review of the merits. In line with this precedent, the Court remanded the present case to the Chief Commissioner, directing a re-evaluation of the application in accordance with the law and the Court's previous ruling. The Chief Commissioner was instructed to provide a reasoned decision within two months from receiving the order's certified copy. Consequently, the writ petition was allowed, with no costs imposed.