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TMI Blog2010 (1) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... approval to the NISA under Section 35 (1) (ii) of the Act in view thereof CIT (A) allowed the appeal vide orders dated 30.08.2007 granting exemption under Section 20(21) of the Act to the NISA – held that - Since, the basic issue is as to whether exemption under Section 10(21) is applicable “only to Scientific Research Institution” and not to “other institutions” and this aspect has not been dealt with at all by the Tribunal. We have no option but to set aside the order of the Tribunal and remit the case back to the Tribunal for afresh consideration - , the NISA had been allowed approval under Section 35(1)(ii) of the Act for the last twenty five years, i.e., till 31.03.2003 as of “Scientific Research Association”. Reason why the approval i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebruary, 1970. It is adhering Institute of Science, ICSU on behalf of the country. It was established with the object of nurturing eminence and recognizing scientists in India and harnessing scientific knowledge for the cause of national welfare. Some of the prominent objects of the petitioners Society stated in its memorandum of association are as under: a) The promotion of natural knowledge in India including its practical application to problems of national welfare. b) To act as a body of scientists of eminence for the promotion and safeguarding of the interests of scientists in India; and to represent internationally the scientific work of India. c) To act through properly constituted National Committees in which other learned ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Gazette;" As proviso to this clause puts a condition of obtaining approval by the Central Government becoming entitled to get this deduction, the INSA had also applied for this approval for last more than twenty five years, approval has been granted by the Central Government as a "Scientific Research Association". The gist of these approvals granted from time to time is provided by the appellant as under: "1. As per records INS was approved u/s. 35(1)(ii) of the Act w.e.f. 01.07.1977 as per the vide letter dated 05.03.1980 issued by DST. Min. of Finance had issued a gazette notification No.2139 File No.203/143/77 ITA-II dated 28.01.1978. 2. Further to the omission of Section 35 in Income Tax Act 1987 and consequent to the introdu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may note only that proviso to this sub-section (21) stipulates certain conditions on the scientific research association to enable it to get the tax exemption. However, as we are not concerned with those, that part is not reproduced. 4. Notification dated 01.03.2001 was effective only upto 31.03.2003 and did not cover the year under consideration, though at that time application for this purpose was pending with the CBDT. The AO accordingly framed the assessment at an income of Rs.1,38,44,790/-. Against this order, the NISA filed an appeal before the CIT (Appeals). By that time Notification dated 28.03.2007 had been issued granting approval to the NISA under Section 35 (1) (ii) of the Act in view thereof CIT (A) allowed the appeal vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o submitted representation to the Director, CBDT on 15.05.2007 requesting to place it under "Association Category". This application is still pending with CBDT. 6. The order of the CIT(A) shows that it went by the approval granted by Notification dated 28.03.2007 and held that since this Notification was available as per which approval was granted with effect from 01.04.2003, which had not been issued when the assessment order was passed, the assessee would be entitled to exemption. In appeal, the Revenue had specifically averred that the CIT (A) had erred in overlooking the fact that the Notification was put to the NISA under the category of "other institutions" and not "Scientific Research Institutions". It is clear from the ground No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Association in accordance with provisions of sec. 35(1)(ii) of the Act vide their order dated 28.3.2007 which is subsequent to the passing assessment order i.e. 11.12.2006. 5. At the time of hearing a copy of approval by CBDT was given by ld. AR to ld. DR and time was allowed to ld. DR to go through the said approval of CBDT. After going through the said approval ld. DR submitted that it is a proper approval. In this view of the situation, we find no infirmity in the order of CIT(A), therefore departmental appeal is dismissed." 8. No doubt, the learned DR had conceded that it was a proper approval. However, such a concession in law would not be binding upon the party, viz., Revenue in this case. Since, the basic issue is as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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