Re-examination of exemption claim under Section 10(23C)(iv) was unwarranted where the claim had already been examined on merits.

The Tribunal examined whether the CIT(A) could direct the Assessing Officer to re-examine the assessee's exemption claim under Section 10(23C)(iv) after the claim had already been considered in assessment proceedings. It noted that the AO had dealt with the provision on merits in the assessment order and that no fresh factual or legal basis justified a further remand for reconsideration. On that basis, the Tribunal quashed the CIT(A)'s direction to re-examine the claim and allowed the appeal in favour of the assessee.

---

---

Issues: Whether the Commissioner of Income Tax (Appeals) erred in directing the Assessing Officer to re-examine the assessee's claim under Section 10(23C)(iv) of the Income-tax Act, 1961, by issuing directions in its order dated 27.10.2025.

Analysis: The appeal raises a single substantive issue concerning the propriety of directions issued by the ld. CIT(A) to the AO to re-examine the exemption claim under Section 10(23C)(iv) after an intimation under Section 143(1) and subsequent proceedings. The Tribunal examined the record of the AO's order dated 26.03.2025 and noted that the AO had already considered the provisions of Section 10(23C)(iv) in the assessment proceedings. The Tribunal considered the sequence of events including filing of the original and revised returns and the intimation under Section 143(1), and evaluated whether issuance of further directions for re-examination by the ld. CIT(A) was warranted where the AO had already dealt with the relevant exemption provision. The Tribunal found that no fresh case was made out to justify the CIT(A)'s directions and that the AO had already examined the claim on merits in the assessment order.

Conclusion: The direction of the ld. CIT(A) to the AO to re-examine the claim under Section 10(23C)(iv) was quashed and set aside; the appeal is allowed in favour of the assessee.

---