TaxTMI 
TaxTMI 
1989 (1) TMI 102
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....event of its winding up, its surplus funds or assets are to be handed over to another institution with similar objects or other charitable institutions. Before the return of income of the assessee for the assessment year 1965-66 became due on June 30, 1965, on June 14, 1965, the assessee filed a petition for securing the approval of the Government of India under clause (iii) of the proviso to section 10 (23) of the Income-tax Act, 1961 (hereinafter referred to as "the Act" ). In respect of the assessment years 1965-66 and 1966-67 (in relation to the assessee's previous years ended on June 30, 1964 and June 30, 1965) the assessee returned Rs. 41,175 and Rs. 1,58,398 and in the context of the petition filed for approval of the Government of I....
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....roving the asses see, viz., the Madras Polo and Riders Club, under section 10(23) of the Income-tax Act, 1961, effective from April 1, 1965. In the appeals before the Tribunal, the assessee claimed that though the second order of the Government of India referred to the date, April 1, 1965, the approval granted under section 10(23) of the Act was effective and applicable for the assessment years 1965-66 and 1966-67 and, therefore, the income of the assessee for the assessment years 1965-66 and 1966-67 was not taxable, as the date April 1, 1965, represented an absolute point of time beyond which no tax was leviable on the income of the assessee. However, the Revenue maintained that the twin orders of approval of the Government of India wou....
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....benefits of the order of approval of the Government of India under section 10(23) of the Act for both the assessment years 1965-66 and 1966-67. Ultimately, the Tribunal set aside the orders of the Income-tax Officer and the Appellate Assistant Commissioner and directed the Income-tax Officer to allow exemption to the assessee under section 10(23) of the Act in respect of its income for the two assessment years, after verifying the factual position regarding the fulfilment by the assessee of the conditions specified in clauses (i) and (ii) of the proviso to section 10(23) of the Act. Thereupon, the Revenue sought a reference under section 256(1) of the Act and the following question of law has been referred for our opinion : "Whether, ....
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....cified in clauses (i) and (ii) of the proviso to section 10(23) of the Act in respect of the two assessment years in question. We cannot, therefore, accept the contention of learned counsel for the Revenue that there was no scope for the assessee to comply with the requirements of clauses (i) and (ii) of the proviso to section 10(23) of the Act in these two assessment years and, therefore, the assessee is not entitled to claim the benefit of exemption. In so far as the contention that the benefit of exemption would be available to the assessee only for the accounting periods commencing from April 1, 1965, onwards is concerned, it is seen that the assessee's previous years ended on June 30, 1964, and June 30, 1965, relevant for the assess....