By K. B. Bhujle, Advocate
CIT(Exemption)
vs. Haryana State Pollution Control Board; 403 ITR 337 (P&H);
Date
of Order: 14th July, 2017:
A.
Y.: 2012-13:
Section
10(23C)(iv) of ITA 1961
For A. Y. 2012-13, the
assessee filed return of income claiming exemption u/s. 10(23C)(iv) of the
Income-tax Act, 1961. The Assessing Officer denied exemption on the ground that
the assessee had not obtained the necessary approval from the prescribed authority
for exemption u/s. 10(23C)(iv) of the Act.
The Commissioner (Appeals)
allowed the exemption on the ground that the Commissioner (Exemption)’s order
dated 01/03/2016 granting exemption u/s. 10(23C)(iv) of the Act, for the A. Ys.
2006-07 to 2011-12 was also applicable for the A. Y. 2012-13. The Tribunal
upheld the order passed by the Commissioner (Appeals).
On appeal by the Revenue,
the Punjab and Haryana High Court upheld the decision of the Tribunal and held
as under:
“i) Circular No. 7 of 2010,
dated 27/10/2010 clarifies that as in the case of approvals under sub-clauses
(iv) and (v) of section 10(23C) of the Income-tax Act, 1961, any approval
issued on or after 01/12/2006 under sub-clause (vi) and (via) of that
sub-section would also be a one time approval which would be valid till it is
withdrawn.
ii) It was recorded by the
Tribunal that the capital expenditure had not been charged to the profit and
loss account. The third proviso to section 10(23C) of the Act provides for
“applies its income or accumulates it for application, wholly or exclusively to
the objects for which it is established…..” Thus, the amount was spent by the
assessee towards the object. It was further recorded by the Tribunal, after
examining the matter that the amounts spent by the assessee were clearly the
application of the income to achieve the objects of the assessee.
iii) The assessee had been
granted approval u/s. 10(23C)(iv) of the Act and thus, there was no question of
disallowing any amount of this nature.
iv) No substantial question
of law arises and the appeal stands dismissed.”
