Exemption approval under section 10(23C)(iv) kept pending, so adjudication on merits was deferred until CBDT decides the petition.

Exemption claims under section 10(23C)(iv) and section 10(46) were not finally adjudicated because the approval petition before the CBDT remained pending. The assessee relied on earlier exemption notifications for similarly placed pollution control boards and argued that its activities had remained unchanged since inception. As the approval issue was determinative of the exemption claim, adjudication on merits was deferred and the matter was sent back to the Assessing Officer until the CBDT decides the approval petition.

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Issues: Whether the appeals concerning approval under section 10(23C)(iv) of the Income-tax Act, 1961 should be remanded to the Assessing Officer pending disposal of the approval petition before the CBDT.

Analysis: The assessee had sought exemption under section 10(23C)(iv) and section 10(46) and relied on earlier notifications granting exemption to similarly placed pollution control boards with retrospective effect. The material on record indicated that the assessee's activities had remained unchanged since inception, but the question in the appeals depended upon the approval under section 10(23C)(iv), which was still pending before the CBDT. In these circumstances, the appropriate course was to defer adjudication on the merits of the exemption claim until the approval petition was decided.

Conclusion: The matter was remanded to the file of the Assessing Officer until the CBDT disposes of the approval petition.

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