2012 (6) TMI 679 - HC - Income Tax

Writ petition - exemption from the applicability of the Act under Section 10(23C)(iiiab) of the Act Held that - order dated 26.07.2011 is only an interim order. - Ordinarily, interim order cannot be allowed to be challenged at every stage, like present one. - The petitioner will have a right to challenge the impugned order in regular appeal against final order, in case, necessity so arises. Submission of learned counsel for the petitioner is that impugned order is final and the same cannot be challenged in any other proceedings, except by way of this writ petition is not correct and tenable.

Summary

Issues:
Challenge to order denying exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961.

Analysis:
The petitioner, a university, challenged an order by the Income Tax Officer denying exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961. The Income Tax Officer concluded that the university was not wholly or substantially financed by the government based on the financial details provided. The petitioner argued that the reasons for rejecting the objection were illegal and without jurisdiction. The High Court examined the impugned notice, the objection petition, and the order in question. It noted that the order was interim, and the final order under Section 143(3) read with Section 147 of the Act was pending. The court clarified that the interim order could be challenged in the appeal against the final order. The petitioner's claim that the interim order was final and could only be challenged through the writ petition was deemed incorrect. The court disposed of the writ petition, granting the petitioner the right to challenge the interim order in the appeal against the final order if necessary.