Income-tax exemption claim under section 10(23C)(iiiad) upheld where the issue was already raised and decided on merits.

Exemption under section 10(23C)(iiiad) was examined in light of whether the claim had been properly raised before the Commissioner (Appeals). The assessee had filed supplementary submissions, produced material on the trust's objects, land allotment, school building and commencement of the school, and the Commissioner (Appeals) considered the additional ground and found the exemption claim allowable. The revenue's objection that no such claim had been made before the lower authorities was not accepted, and the prior Tribunal decision in the assessee's own case was also noted. The appeal was dismissed because no substantial question of law arose.

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Issues: Whether exemption under section 10(23C)(iiiad) of the Income-tax Act, 1961 was wrongly granted on the ground that no such claim had been made before the assessing authority or the Commissioner (Appeals), and whether the revenue's appeal under section 260-A raised any substantial question of law.

Analysis: The assessee had specifically raised the entitlement to exemption in supplementary submissions before the Commissioner (Appeals) and had placed relevant factual material on record, including the trust's objects, land allotment, school building and commencement of the school. The Commissioner (Appeals) dealt with the additional ground and recorded a finding that the assessee was entitled to exemption under section 10(23C)(iiiad). In view of that adjudication, the contention that the claim had not been raised before the appellate authority was not accepted. The prior order of the Tribunal in the assessee's own case was also noted, and the revenue did not distinguish the earlier decision of the Court.

Conclusion: The claim for exemption was validly raised and decided on merits, and no substantial question of law arose. The appeal was dismissed in favour of the assessee.

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