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2014 (12) TMI 976 - KERALA HIGH COURTBenefit of section 10(23C)(via) – Applicability of 14th Proviso to Section10 (23-C)(via) to AYs 2005-2006 and 2006-2007 - Assessee contended that revenue could not take advantage of his own inaction, in not passing any orders on application that was pending before him – Held that:- Revenue was of the view that the assessee had not preferred the application in respect of the AYs during the financial year immediately preceding the AY for which the benefit was sought - the finding of the revenue cannot be legally sustained insofar as it stems from an erroneous interpretation of the applicability of the proviso - the Proviso is intended to ensure that any application preferred after 01.06.2006, for the purposes of grant of exemption or continuation thereof, has to be made during the financial year immediately preceding the AY from which the exemption is sought. The Proviso could not have been cited as a reason for holding the application preferred by the petitioner for the assessment years 2005-2006 and 2006-2007 to be belated - the findings relating to the AY 2007-2008 are also legally unsustainable since, even if the revenue was of the opinion that the benefit of Section 10 (23-C) (via) could not be continued for the AY, nothing prevented him from treating the application as a fresh application for the grant of the benefit u/s 10(23-C)(via) for the AY 2007-2008 - the law that governs the assessment of an assessee in any AY is the law prevailing as on 1st of April of the relevant AY - the amendment would govern only the exemption that was to be granted with effect from the AY 2007-2008 onwards – thus, the order of revenue is set aside and the revenue is directed to consider the application and grant the benefit u/s 10 (23-C) (via) for the period from 2002-2003 to 2007-2008 – Decided in favour of assessee.
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