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2020 (2) TMI 583 - HC - Income TaxExemption u/s 10(20) sic. 10(22) - claim denied as element imparting education to the students of normal schooling is absent to attract the exemption as engrafted under the aforesaid provision - Tribunal allowed exemption - HELD THAT - We are conscious of the fact that the provision contained in Subsection (22) of Section 10 has been omitted from the Act w.e.f. 1.4.1999 but the assessment year involved in the present case is 1994-95. In this view of the matter, the present case is squarely covered by the judgment in Assam State Text Book Production 2009 (10) TMI 60 - SUPREME COURT and Division Bench judgment of this Court in M.P. Text Book Corporation 2015 (7) TMI 537 - MADHYA PRADESH HIGH COURT The impugned order passed by the learned Tribunal is set aside. The matter is remanded to the Assessing Officer for de novo consideration. All questions are left open.
Issues involved:
1. Appeal under Section 260A of the Income Tax Act, 1961 against an order passed by the Income Tax Appellate Tribunal regarding exemption under Section 10(22) for the assessment year 1994-95. Analysis: 1. The appellant, the Revenue, filed an appeal challenging the order of the Income Tax Appellate Tribunal denying exemption under Section 10(22) of the Income Tax Act, 1961 to the assessee for the assessment year 1994-95. The substantial question of law for determination was whether the Tribunal was justified in granting the exemption when the element of imparting education to students was absent. The assessee, a registered Society under the M.P. Societies Registration Act, 1959, claimed the exemption based on its memorandum of association. The Assessing Officer initially denied the exemption, but the Commissioner of Income Tax (Appeals) allowed it. The Tribunal affirmed the CIT(A)'s decision based on its earlier ruling that the assessee's role in imparting education justified the exemption, as observed in a previous case involving the same assessee. 2. The appellant relied on a Division Bench decision in a separate case involving a Text Book Corporation, where similar issues were remanded to the Assessing Officer for reconsideration. The assessee's counsel supported the impugned order but did not contest the applicability of the Division Bench decision. The Court noted that no information was provided regarding any further challenges to the Text Book Corporation case or the subsequent actions of the Assessing Officer. 3. The Supreme Court's decision in Assam State Text Book Production and Publication Corporation Ltd. case was cited, emphasizing that State-controlled Educational Committees/Boards should be treated as educational institutions. Following this precedent, the Division Bench in the Text Book Corporation case remanded the matter for fresh consideration by the Assessing Officer. The Court, considering the relevant legal provisions and precedents, set aside the Tribunal's order and remanded the case to the Assessing Officer for de novo consideration, leaving all questions open for further examination based on the Supreme Court's decision and relevant High Court judgments. 4. Despite the omission of Section 10(22) from the Act from 1.4.1999, the case for the assessment year 1994-95 fell within the purview of the relevant legal precedents. Therefore, the Court allowed the appeal, following the decision in the Text Book Corporation case, and remanded the matter for fresh consideration by the Assessing Officer, leaving all questions open for further review. This detailed analysis of the judgment highlights the key legal issues, arguments presented by the parties, relevant legal precedents, and the Court's decision to remand the case for reconsideration by the Assessing Officer.
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