2025 (1) TMI 1771 - AT - Income Tax

Approval under 10(23C)(iv) charitable exemption pending CBDT decision; matter remanded to assessing officer for outcome.

Approval for charitable exemption under 10(23C)(iv)/10(46) hinges on executive exercise of power by CBDT/CIT(E) including authority under administrative ... Approval to be granted u/s 10(23C)(iv)/10(46) - Terms of power vested with CBDT/CIT(E) and its authority u/s 119(2)(b) - Retrospective notification of charitable status HELD THAT:- CBDT has notified Madhya Pradesh Pollution Control Board and State Pollution Control Board, Odisha with retrospective effect and no person is adversely affected by giving retrospective effect to these notifications. We find that the ld. DR has not controverted that there has been any change in the activities performed by the assessee since its inception and the assessee has been notified for FY 2014-15 onwards on the basis of the same activities. We find that the question involved in these appeals are dependent on the approval u/s 10(23C)(iv) which is pending before the CBDT. Therefore, we are of the considered view that the matter be remanded to the file of the Assessing Officer till such time the petition for approval is disposed of by the CBDT. Issues: Whether approval/notification under section 10(23C)(iv) of the Income-tax Act, 1961 (and related exemption under section 10(46)) should be treated so as to grant exemption for the impugned assessment years and whether the matter should be remanded pending disposal of the approval application by the CBDT.Analysis: The applications for exemption under section 10(23C)(iv) and section 10(46) of the Income-tax Act, 1961 with consequential prayers for condonation of delay are on record. Subsequent notifications under section 10(46) have been issued by the CBDT for later years and analogous boards have been notified with retrospective effect in other cases. The approval under section 10(23C)(iv) remains pending before the CBDT and the question of exemption for the impugned years is dependent on the disposal of that approval. The appropriate course is to await the administrative determination on the approval application and to remit the matter to the Assessing Officer for action in accordance with the CBDT's decision.Conclusion: The appeals are remitted to the file of the Assessing Officer pending disposal of the petition for approval by the CBDT; the appeals are allowed for statistical purposes and accordingly disposed of in favour of the assessee.