2012 (2) TMI 728 - AT - Income Tax

Summary

Issues involved:
The denial of exemption to income u/s.10(23C)(vi) of the Act for the assessment years 2002-03 and 2003-04.

Issue 1: Denial of exemption u/s.10(23C)(vi) of the Act

The assessee Trust, registered under the Indian Trusts Act, 1882, sought exemption u/s.10(23C)(vi) for conducting educational activities. The Central Board of Direct Taxes (CBDT) rejected the initial application for exemption, leading to subsequent review applications also being declined. The Assessing Officer (AO) then denied the exemption for the relevant assessment years based on the CBDT's decision. The matter was brought before the ITAT, Mumbai, where it was directed that a decision should be made post the pending application before the CBDT. Similarly, for the assessment years 2002-03 & 2003-04, the Chief Commissioner of Income-tax (CCIT) refused to grant exemption, prompting a Writ Petition before the High Court of Bombay. Given the pending Writ Petition and CBDT application, all appeals and Cross Objections were remitted to the AO for reconsideration post the High Court's decision.

In conclusion, the Appellate Tribunal ITAT Mumbai addressed the core issue of denial of exemption u/s.10(23C)(vi) of the Act for the assessment years 2002-03 and 2003-04. The Tribunal set aside the orders of the Ld. CIT (A) and directed the matters to be reconsidered by the Assessing Officer after the High Court of Bombay's decision on the pending Writ Petition. All appeals and Cross Objections were allowed for statistical purposes.