INCOME TAX ACT, 1961

Section 10(23A)

Exemption under section 10(23A) - Allowability - Chhattisgarh State Bar Council (assessee) sought continuance of benefit of exemption -

Assessee (Chhattisgarh State Bar Council) was a statutory body constituted in terms of section 3 of the Advocates Act, 1961. Issue was as regard denial of exemption under section 10(23A). Assessee filed an application before CBDT for exemption from '2006-07' onwards. Case of revenue was that as per scheme of Statute, unless there was a specific order granting exemption in terms of section 10(23A), no relief could be extended. Held: There was no dispute with regard to genesis of case; particularly, as to the formation of the new State of Chhattisgarh, after having the same carved out from the erstwhile undivided State of Madhya Pradesh. It was also a fact conceded that there has to be only one Bar Council for the entire State as per the scheme of the Advocates Act and that the Bar Council of the undivided State was granted exemption in terms of section 10(23A) of the Act of 1961. After formation of the new State of Chhattisgarh, pursuant to the Act of 2000, the erstwhile Bar Council came to be separated as two different Bar Councils. Needless to say that a formal application had to be submitted by the Chhattisgarh State Bar Council for continuing to enjoy the benefit of exemption, but that was only a technical and procedural formality, insofar as the formation of new State and formation of the new State Bar Council is a statutory consequence. That being position, analysis made by Single Judge with regard to course pursued by Department and declaration of eligibility of the Chhattisgarh State Bar Council to get exemption in terms of section 10(23A), were not liable to be interdicted in any manner.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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