Exemption under section 10(23C)(vi) required fresh consideration after subsequent approval for the relevant assessment year.

Approval granting exemption under section 10(23C)(vi) for the relevant assessment year had been produced before the Tribunal, and the earlier appellate order had not considered this subsequent development. The denial of exemption therefore rested on an incomplete factual basis, so the matter was restored to the CIT(A) for fresh consideration of the exemption claim in accordance with law. The assessee succeeded to that extent.

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Issues: Whether the assessee's claim for exemption under section 10(23C)(vi) required reconsideration in view of the subsequent approval granted for the relevant assessment year.

Analysis: The assessee produced an approval order granting exemption under section 10(23C)(vi) with effect from the relevant assessment year, and that approval was available before the Tribunal when the appeal was heard. The Tribunal found that the appellate order had been passed without considering this later development, which directly affected the basis on which exemption had been denied. In these circumstances, the matter required reconsideration by the first appellate authority in accordance with law.

Conclusion: The issue was restored to the CIT(A) for fresh consideration of the exemption claim under section 10(23C)(vi), and the assessee succeeded to that extent.

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