Section 12A rejection cannot survive once the earlier Tribunal ruling is upheld by the Court and the basis disappears.

Rejection of a Section 12A application could not stand where it was based on the view that earlier relief under Section 10(23C) had been wrongly granted, because that premise ceased to survive after the Court later upheld the Tribunal's earlier order and reasoning. Once the earlier judgment had affirmed the Tribunal decision, the foundation for the impugned rejection disappeared. The rejection order was quashed, and the respondents were directed to consider and grant the claimed relief in light of the Court's earlier judgment.

---

---

Issues: Whether the rejection of the petitioner's application under Section 12A of the Income-tax Act, 1961, based on denial of relief under Section 10(23C), could stand in view of the subsequent judgment of the Court upholding the earlier Tribunal decision.

Analysis: The impugned rejection was founded on the premise that the relief granted for earlier years by the Tribunal rested on erroneous grounds. That premise had ceased to hold good because the earlier Tribunal order and reasoning had since been upheld by the Court. In that situation, the basis of the rejection could not survive.

Conclusion: The rejection order was quashed and the respondents were directed to consider and grant the claimed relief in light of the Court's earlier judgment, resulting in relief to the assessee.

---