University's Challenge to Income Tax Order Dismissed; Clarification on Challenging Interim Orders

The High Court dismissed the petitioner university's challenge to the Income Tax Officer's order denying exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961. The court clarified that the interim order could be challenged in the appeal against the final order, rejecting the petitioner's argument that the interim order was final and could only be challenged through a writ petition. The petitioner was granted the right to challenge the interim order in the appeal against the final order if needed.

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Issues:
Challenge to order denying exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961.

Analysis:
The petitioner, a university, challenged an order by the Income Tax Officer denying exemption under Section 10(23C)(iiiab) of the Income Tax Act, 1961. The Income Tax Officer concluded that the university was not wholly or substantially financed by the government based on the financial details provided. The petitioner argued that the reasons for rejecting the objection were illegal and without jurisdiction. The High Court examined the impugned notice, the objection petition, and the order in question. It noted that the order was interim, and the final order under Section 143(3) read with Section 147 of the Act was pending. The court clarified that the interim order could be challenged in the appeal against the final order. The petitioner's claim that the interim order was final and could only be challenged through the writ petition was deemed incorrect. The court disposed of the writ petition, granting the petitioner the right to challenge the interim order in the appeal against the final order if necessary.

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