High Court rules in favor of assessee on tax exemption issue. Approval u/s 10(25)(iii) valid = exemption granted.

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....The High Court addressed the issue of exemption u/s 10(25)(iii) of the Income Tax Act. The Assessing Officer denied the exemption to the assessee fund, claiming it lost recognition without a formal order of withdrawal by the Commissioner of Income Tax. The Court held that as long as the approval u/s 10(25)(iii) and rules remained valid, the Assessing Officer must grant exemption. The Assessing Officer lacked jurisdiction to deny exemption based on recognition loss. The power to withdraw approval lies with the competent authority as per the rules. The High Court set aside the ITAT's order, ruling in favor of the assessee, emphasizing the importance of upholding approved exemptions and maintaining judicial discipline.....