Objects of assessee society were amended and in view of subsequent development assessee would have applied appropriately-Assessee was granted one month's time to file a fresh application

SUPREME COURT OF INDIA

Civil Appeal Nos. 780 & 781 of 2014

Om Prakash Shiksha Prasar Samiti...................................................................Appellant.
v.
Chief Commissioner of Income-tax, Bhopal ......................................................Respondent

H.L. DATTU AND S.A. BOBDE, JJ.

Date :JANUARY 20, 2014

Appearances

Ajay Vohra for the Petitioner.
R.P. Bhatt, Ms. Shalini Kumar, Ms. Gargi Khanna and Mrs. Anil Katiyar for the Respondent.

Section 10(23C)(vi) of the Income Tax Act, 1961 — Exemption — Objects of assessee society were amended and in view of subsequent development assessee would have applied appropriately — Assessee was granted one month's time to file a fresh application

FACTS:

Assesses have applied for grant of certificate of registration u/s 10(23C)(vi) for claiming exemption under the provisions of the act. The said certificate was not granted by the authorities primarily on the ground that assessees were not using the entire income for educational purposes for which purpose the trust was established. Being aggrieved of the order of CCIT, assessees filed a writ petition before High Court which was dismissed. Being aggrieved, assesses filed a writ petition before Supreme Court.

HELD,

that objects of the society were amended w.e.f 31-03-2008. If that was so, assessees would have applied appropriately before the authorities for grant of certificate u/s 10(23C)(vi) for AY 2002-03 to 2007-08 along with amended objects of society. Order of High Court and authorities was set aside and assessees were given a one month's time to file a fresh application. In the result, petition was answered in favour of assessee.

JUDGMENT

1. Leave granted.

2. These appeals are directed against the judgment and order passed by the High Court of Madhya Pradesh at Gwalior in W.P. (C) Nos. 5476 of 2006 and 1602 of 2008, dated 30.03.2011. By the impugned judgment and order the High Court has affirmed the reasoning and conclusion reached by the Chief Commissioner of Income Tax Bhopal.

3. The petitioners have applied for grant of a certificate under Section 10(23C)(vi) of the Income Tax Act, 1961 (for short, 'the Act') inter alia requesting the authorities to grant certificate to claim exemption under the provisions of the Act. The said certificate was not granted by the authorities primarily on the ground that the appellants are not using the entire income for the educational purposes for which purpose the trust is established.

4. Being aggrieved by the order passed by the Chief Commissioner of Income Tax, the appellants have approached the High Court in W.P. (C) Nos. 5476 of 2006 and 1602 of 2008. The said writ petitions were dismissed by the High Court.

5. Heard learned counsel for the parties to the lis.

6. We are informed by the learned counsel for the appellants that the appellants have amended the objects of the Society w.e.f. 31.03.2008. If that is so, in our opinion, the appellants shall now make an appropriate application before the authorities for grant of certificate under Section 10(23C)(vi) of the Act for the assessment years 2002-03 to 2007-08 along with the amended objects of the Society.

7. In view of this subsequent development and keeping in view the peculiar facts and circumstances of the case, we set aside the order passed by the High Court and the authorities concerned. We now permit the appellants to file fresh application within a months' time from today. If such application is filed within the time granted the authority will consider the same in accordance with law, keeping in view the amended objects of the Society w.e.f. 31.03.2008. All the contentions of both the parties are left open.

8. The Civil Appeals are disposed of accordingly.