TaxTMI 
TaxTMI 
2026 (6) TMI 82
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.... appeal, however, at the very outset, Shri J. D. Mistry, learned Sr. Counsel appearing for the assessee submitted that the primary grievance of the assessee is against disposal of the appeal by ld. first appellate authority instead of keeping it in abeyance, as requested by the assessee. 3. Briefly the facts are, the assessee is a charitable Trust, registered with Charity Commissioner, Mumbai. The assessee is also registered u/s. 12A of the Income Tax Act, 1961 ('the Act' for short). Since, the assessee is running a hospital for providing medical care, it made an application seeking approval u/s. 10(23C)(via) of the Act for enabling it to claim exemption under the said provision. However, the said application was rejected by the Chief Co....
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....rying out its activities like a business venture for attaining profit maximization. Though, he concluded that the assessee is entitled to exemption u/s. 11 of the Act but certain deductions claimed cannot be allowed. 6. Having held so, he proceeded to compute the income of the assessee. While doing so, he disallowed claim of depreciation and provision of gratuity and leave encashment. Ultimately, he determined the total income at Rs. 40,73,35,146/-, against which, he allowed exemption u/s. 11(1)A of the Act for an amount of Rs. 6,11,00,272/-. Having computed the income as such, he allowed exemption u/s. 10(23C)(via) of the Act for an amount of Rs. 34,62,34,874/-. 7. Against the assessment order so passed, the assessee preferred an app....
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.... a direction to wait for the final outcome of the writ application and, thereafter, proceed to decide the appeal. 10. Ld. Departmental Representative (ld. DR for short) relied upon the observations of the A.O. 11. We have considered rival submissions and perused the materials available on record. A reading of the impugned assessment order itself reveals that the assessee was initially availing exemption u/s. 10(22A) of the Act between A.Ys. 1970 -71 to 1995-96. Thereafter, the assessee was granted approval u/s. 10(23C) of the Act by the Central Board of Direct Taxes (CBDT for short) vide order dated 10.04.2003 and was availing exemption for the years 1999-2000 to 2001-02. It is a fact on record that assessee's application for renewal ....
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....e in the writ petition. Thus, as could be seen from the aforesaid facts, while granting interim relief to the assessee, the Hon'ble High Court had clearly directed the A.O. to complete the assessment on the basis that petitioners applications seeking approval u/s. 10(23C)(via) of the Act are approved. 13. However, while completing the assessment for the impugned assessment year, instead of carrying out the directions of Hon'ble High Court in letter and spirit, the A.O. has proceeded to examine assessee's claim of exemption u/s. 11 of the Act and after computing the income of the assessee under the said provision has granted exemption u/s. 10(23C) of the Act at a much reduced amount. It is a fact on record that against the said as....