A C I T Vs. STOCK EXCHANGE AHMEDABAD

JUDGEMENT

(1.) IN this group of appeals the appellant-revenue has challenged the common order dated 28 th October, 1999 passed by the Income Tax Appellate Tribunal in M.A. No.87 to 93/Ahd/99.

(2.) THE assessment years are 1989-90 to 1995-96 respectively. The respondent-assessee is a non-registered association of members. It appears that the assessee had claimed that its income was liable to be exempted under section 11 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") which came to be allowed up to assessment year 1983-84. For assessment year 1984-85 to 1988-89, exemption under section 10(23C)(iv) was allowed. The assessee made an application for renewal of exemption under section 10(23C)(iv) of the Act for the subsequent years, that is, assessment years 1989-90 to 1992-93 but the same came to be rejected. Against the order of rejection, the assessee filed a writ petition before this court which came to be disposed of with a direction to the Central Government to reconsider the assessee's claim. After reconsideration, the Central Government by an order dated 7 th March, 1997 held that the assessee was not entitled to the benefit of section 10(23C)(iv) of the Act. The assessee did not make any application under section 10(23C)(iv) for assessment year 1993-94 and onwards. It appears that in the original returns of income, the assessee had claimed exemption under section 10 of the Act. However, subsequently, on 17 th January, 1996, the assessee filed revised returns for five assessment years, that is, assessment year 1989-1990 to 1993-94 claiming exemption under section 11 of the Act. The Assessing Officer was of the view that as there was no notification under section 10(23C)(iv), the claim of the assessee was required to be examined only under the provisions of sections 11, 12 and 13 of the Act. He, however, did not accept the assessee's claim for exemption under section 11 of the Act, inter alia, on the ground that the assessee was required to make an application for accumulation of income within the prescribed time, but for the aforesaid five assessment years, applications in Form No.10 were not filed in time and that the same were filed alongwith the fresh return of income.

(3.) WHILE admitting the appeals, this court had framed the following substantial question of law:-