DIRECTOR OF INCOME TAX (EXEMPTIONS) AND ORS. Vs. DHAMAPAKASHA RAJAKARYA PRASAKTA B.M. SREENTVASAIAH EDUCATIONAL TRUST

JUDGEMENT

(1.) The Revenue has preferred these appeals against the order passed by the Tribunal dismissing the appeal filed by the Revenue and allowing the appeal filed by the assessee and granting relief to the assessee. The impugned order relates to the assessment years 2003-04 and 2005-06, where a common order is passed. As the question involved is the same, the appeals are taken up for consideration together and disposed of as the other two appeals also arise out of the same order. The assessee is running a number of educational institutions. The assessee filed its return of income. The Assessing Officer under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has held that the assessee is not entitled to the benefit claimed under section 11 of the Act. He did not go into the question of exclusion benefit claimed by the assessee under section 10(23C)(iiiab) of the Act.

(2.) Aggrieved by the said order the assessee preferred an appeal to the Commissioner of Income-tax (Appeals). The Appellate Commissioner set aside the order of the assessing authority refusing the grant under section 11 of the Act and granted the relief to the assessee but he declined to grant the relief under section 10(23C)(iiiab) of the Act.

(3.) Aggrieved by the said order, both the assessee as well as the Revenue preferred two appeals each. The Tribunal by its impugned order has set aside the order passed by the Appellate Commissioner holding that the assessee is not entitled to the benefit under section 10(23C)(iiiab) of the Act and allowed the appeals filed by the assessee. It dismissed the appeals of the Revenue on the ground that, once a benefit is granted under section 10(23C)(iiiab) of the Act, the assessee is also entitled to the benefit under section 11 and, therefore, the Revenue's appeals were dismissed. Aggrieved by the impugned order, these appeals are filed.