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November 2025

Charitable Institution — Exemption u/s. 10(23C)(iv) — Assessee a Institution for promoting trade, commerce and industry — Rejection of application for exemption invoking s. 2(15) for A. Y. 2014-15 — Appeal pending against rejection order — On similar facts and circumstances Tribunal granted exemption u/s. 10(23C)(iv) to assessee for A. Y. 2016-17 and 2017-18 — Matter remanded to the Tribunal for reconsideration — Not challenging order of rejection for A. Y. 2013-14 is assessee’s discretion.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

43. Indian Merchants Chamber vs. CIT

(2025) 478 ITR 599 (Bom): 2024 SCC OnLine Bom 4281

A. Y. 2014-15: Date of order 08/03/2024

Ss. 2(15), 10(23C)(iv), 253 and 254 of ITA 1961

Charitable Institution — Exemption u/s. 10(23C)(iv) — Assessee a Institution for promoting trade, commerce and industry — Rejection of application for exemption invoking s. 2(15) for A. Y. 2014-15 — Appeal pending against rejection order — On similar facts and circumstances Tribunal granted exemption u/s. 10(23C)(iv) to assessee for A. Y. 2016-17 and 2017-18 — Matter remanded to the Tribunal for reconsideration — Not challenging order of rejection for A. Y. 2013-14 is assessee’s discretion.

The petitioner is an institution formed and established with the primary object of promoting, advancing and protecting trade, commerce and industry in India. It has been regularly filing return of income since its inception. The Central Government had notified the petitioner as an institution qualifying for this exemption for the A. Ys. 1977-1978 to 2000-2001. Thereafter, up to the A. Y. 2008-2009, the Revenue has granted it exemption u/s. 11 of the Income-tax Act, 1961 as a charitable institution.

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Miscellaneous Application — Mistake apparent on record — S. 254(2) — Appeal of the assessee was allowed by the Hon’ble Tribunal on the basis of the judgment of the High Courts prevailing at that time — Subsequently, the Hon’ble Supreme Court reversed the view taken by the High Courts — Subsequent decision of the Hon’ble Supreme Court cannot be the basis to invoke section 254(2).