Fresh approval application allowed where amended objects of an educational society require reconsideration under tax law

Where an educational society's governing objects are materially amended after an adverse refusal of approval, the proper course is to permit a fresh application to be made and considered on the amended objects in accordance with law. The prior orders refusing approval under Section 10(23-C)(vi) were set aside, and the assessee was allowed to re-approach the authority within the time granted for reconsideration on the updated factual basis.

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Issues: Whether the assessee was entitled to have the adverse orders set aside and be permitted to make a fresh application for approval under Section 10(23-C)(VI) of the Income-tax Act, 1961 in view of the amended objects of the Society.

Analysis: The certificate had been declined on the basis that the entire income was not being applied for educational purposes. During the appeal, it was brought to notice that the objects of the Society had been amended with effect from 31.03.2008. In light of this subsequent development, the proper course was to allow the assessee to approach the authority afresh with the amended objects for the relevant assessment years.

Conclusion: The adverse orders were set aside and the assessee was permitted to file a fresh application within the time granted, to be considered in accordance with law on the basis of the amended objects.

Ratio Decidendi: Where a material subsequent change occurs in the governing objects of an educational society, the approval request may be reconsidered on a fresh application in accordance with law rather than being finally concluded on the earlier factual basis.

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