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TMI Blog1989 (1) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... r institution with similar objects or other charitable institutions. Before the return of income of the assessee for the assessment year 1965-66 became due on June 30, 1965, on June 14, 1965, the assessee filed a petition for securing the approval of the Government of India under clause (iii) of the proviso to section 10 (23) of the Income-tax Act, 1961 (hereinafter referred to as "the Act" ). In respect of the assessment years 1965-66 and 1966-67 (in relation to the assessee's previous years ended on June 30, 1964 and June 30, 1965) the assessee returned Rs. 41,175 and Rs. 1,58,398 and in the context of the petition filed for approval of the Government of India referred to earlier, the assessee claimed exemption from tax under section 10 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act, 1961, effective from April 1, 1965. In the appeals before the Tribunal, the assessee claimed that though the second order of the Government of India referred to the date, April 1, 1965, the approval granted under section 10(23) of the Act was effective and applicable for the assessment years 1965-66 and 1966-67 and, therefore, the income of the assessee for the assessment years 1965-66 and 1966-67 was not taxable, as the date April 1, 1965, represented an absolute point of time beyond which no tax was leviable on the income of the assessee. However, the Revenue maintained that the twin orders of approval of the Government of India would apply only for the accounting periods commencing from April 1, 1965, onwards and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act for both the assessment years 1965-66 and 1966-67. Ultimately, the Tribunal set aside the orders of the Income-tax Officer and the Appellate Assistant Commissioner and directed the Income-tax Officer to allow exemption to the assessee under section 10(23) of the Act in respect of its income for the two assessment years, after verifying the factual position regarding the fulfilment by the assessee of the conditions specified in clauses (i) and (ii) of the proviso to section 10(23) of the Act. Thereupon, the Revenue sought a reference under section 256(1) of the Act and the following question of law has been referred for our opinion : "Whether, on the facts and in the circumstances of the case, the order of approval of the Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he two assessment years in question. We cannot, therefore, accept the contention of learned counsel for the Revenue that there was no scope for the assessee to comply with the requirements of clauses (i) and (ii) of the proviso to section 10(23) of the Act in these two assessment years and, therefore, the assessee is not entitled to claim the benefit of exemption. In so far as the contention that the benefit of exemption would be available to the assessee only for the accounting periods commencing from April 1, 1965, onwards is concerned, it is seen that the assessee's previous years ended on June 30, 1964, and June 30, 1965, relevant for the assessment years 1965-66 and 1966-67, respectively. The second order of the Government of India d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive from April 1, 1965, which marked the commencement of the assessment year 1965-66 irrespective of the previous year. The "assessment year", according to section 2(9) of the Act, is a period of twelve months commencing on the I St day of April every year. The "previous year" under section 3 of the Act need not necessarily commence from the 1 St day of April every year, but may vary, according to the choice of the assessee, and it is only with a view to clear any confusion that may result in construing the approval orders granting exemption that the date April 1, 1965, had been specified as a clear, unambiguous and definite date without reference to the previous year. We do not see any basis what ever for restricting the scope of the appr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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