STOCK EXCHANGE Vs. CENTRAL BOARD OF DIRECT TAXES

JUDGEMENT

(1.) LEAVE to add Union of India as a party respondent No. 2. Notice on the respondent No. 2. The learned counsel appears for the respondent No. 2 and waives service of notice.

(2.) THE petitioner challenges the order dt. 9th September, 1991 of the CBDT holding that the exemption under s. 10(23C)(iv) of the IT Act cannot be continued in favour of the petitioner -Stock Exchange.

(3.) AS noted above, by the subsequent order dt. 31st October, 1996, the ground on the basis of which the Board had directed that the provisions of s. 10(23C)(iv) were not applicable, was withdrawn. Therefore, the very basis for the decision communicated was withdrawn from the impugned order. It was, however, submitted that a policy decision was reflected in the order dt. 9th September, 1991 in the last portion that the earlier practice of notifying the Stock Exchange, Ahmedabad under s. 10(23C)(iv) of the Act will not be permissible. It would be noticed that the exemption under the provisions of s. 10(23C)(iv), would apply to a fund or institution established for charitable purposes which may be notified by the Central Government in the Official Gazette. Though the exemption granted to the petitioner under earlier notification which was issued by the Government under the said provision, was for a specific period of five years, a question arose during the hearing of this petition as to whether the Board can decide that the Central Government will not issue any notification under the said provision in respect of the petitioner. There was a communication dt. 18th December, 1980, a copy of which is on record, addressed by the Government of India to the Stock Exchange, which refers to an application of the petitioner being made to the Board for consideration of the issuance of a notification under s. 10(23C)(iv) of the said Act. There is however, no decision taken by the Central Government on the subject. Admittedly in the past exemption notification under s. 10(23C)(iv) was issued in respect of the petitioner Stock Exchange as per the prevalent policy. The discontinuance of further exemption under s. 10(23C)(iv) was on the ground that the petitioner could apply under s. 10(23A). The petitioner therefore, wrote to the CBDT to treat its application for renewal of exemption under s. 10(23C)(iv) made on 27th December, 1988 as an application, under s. 10(23A). It was therefore, felt at the hearing of this petition that the petitioner should make a fresh application in respect of the relevant assessment years in question, which could be considered by the Central Government in context of the provisions of s. 10(23C)(iv) of the Act. The learned counsel for the petitioner states that a fresh application in respect of the relevant assessment years which are under consideration will be made within two weeks. The learned counsel for the respondents submits that eight weeks time may be given to the Government to take a decision on such application. It is, therefore directed that on the petitioner's making a fresh application in respect of relevant assessment years in question within two weeks from today, the Central Government will consider the same and take a decision in accordance with law within six weeks after the application is received. This petition stands disposed of accordingly with no order as to costs. Rajesh Balia, J.