Punjab & Haryana HC Remands Educational Institutions’ Income Tax Exemption Pleas for Reconsideration after SC Clarification [Read Order]
The High Court directed the Chief Commissioner of Income Tax to reconsider exemption applications in light of a Supreme Court judgment, among other authorities.
The Punjab and Haryana High Court at Chandigarh recently remanded a batch of writ petitions filed by various educational institutions seeking Income Tax exemption under Section 10(23C)(vi) of the Income Tax Act, 1961, directing the authorities to pass fresh orders in light of the law laid down by a Supreme Court ruling.
The decision was rendered by the Punjab and Haryana High Court while jointly adjudicating 19 writ petitions filed by numerous educational societies, including S.D. Education Society, Karnal, against the Revenue.
S.D. Education Society approached the High Court contending that it was squarely involved in rendering services of education and was not engaged in the business of profit making.
Accordingly, the Society sought the quashal of an order whereby they were denied income tax exemption under terms of Section 10(23C)(vi) by the Chief Commissioner Income Tax for the same. The petitioner has thus formulated the present case against the impugned orders by which the Revenue rejected their claim.
Sanjay Bansal, B.M. Monga, Rohit Kaura and Sushant Singla appeared for S.D. Education while Sr. Standing Counsel Varun Issar appeared for the Income Tax Department.
The Division Bench comprising Justice Jagmohan Bansal and Justice Amarinder Singh Grewal noted that the counsel for the parties are ad idem that the Supreme Court has previously adjudicated the issue through judgment dated 10.05.2016 passed in a bunch of appeals including CA No.95942 of 2013.
The Bench noted that the apex Court had considered the judgment of the Punjab and Haryana High Court in Pinegrove International Charitable Trust v. Union of India (2010) while passing its judgment.
Accordingly, the High Court directed the Chief Commissioner of Income Tax, Panchkula, to pass fresh orders in light of the law laid down by the Supreme Court through various relevant judgments, after granting the petitioners an opportunity of hearing.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
