INCOME TAX ACT, 1961

Section 143(3)

Assessment - Benefit of exemption under section 10(23C) denied by AO without intimating Central Government or competent authority - Validity of -

Assessee-trust was running an engineering college. It was initially granted approval under section 10(23C)(vi). Pursuant to a search action, its registration under section 12AA and benefit of approval under section 10(23C) was denied. Assessee had approached appellate authorities challenging the cancellation of registration under section 12AA as well as the orders of assessment. The litigation had travelled through the hierarchy of appeals and was pending before Tribunal. Assessee assailed the assessment order contending that assessments were invalid in the light of the proviso to section 143(3), because while farming assessment, AO failed to intimate Central Government or the prescribed authority the specific contravention of the statutory provision before denying benefit of section 10(23C). Held: The issue was pending before Tribunal, which is the final fact finding authority. There was no avenue to interfere with the orders of assessment orders, also for the reason that the orders of assessment stood telescoped into appellate Orders passed by CIT(A) and by Tribunal. Therefore, Court declined to consider the prayer of assessee for a declaration that the assessments were invalid.

REFERRED :

FAVOUR : Against the assessee

A.Y. :

INCOME TAX ACT, 1961

Section 220

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