TMI Blog2010 (1) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... e are that the Assessee-Petitioner is a Trust, which was formed on 22-3-1996 and registered under the Societies Registration Act, 1860, vide Registration Certificate No. 316 of 1998-99, dated 8-6-1998. Its main objectives are imparting of education, educational activities and providing home for orphans, widows and gaushala etc. It is claimed that the Assessee-Petitioner had been granted exemption under Section 10(23C)(vi) of the Act in respect of the assessment years 2003-04 to 2007-08. 3. An amendment was carried out in the Finance Act, 2006 with effect from 1-6-2006 whereby XI Vth proviso (un-numbered) was added to Section 10(23C) of the Act. The assent of the President to the said amendment was granted on 13-7-2006. As per the amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the un-numbered fourteenth proviso to Section 10(23C)(vi). In that regard, reliance has been placed on the judgment of this Court rendered in the case of Young Scholars Educational Society (Regd.) v. CCIT (CWP No. 17179 of 2008, decided on 27-11 -2008, Annexure R-1). A perusal of the impugned order further shows that after comparison of the receipts with the profits of the Assessee-Petitioner during the assessment years 2005-06 to 2006-07, the Chief Commissioner of Income Tax came to the conclusion that it has earned profits ranging from 22.51 per cent to 43.61 per cent during those years, which is against the provisions of Section 10(23C)(vi). In respect of assessment year 2008-09 the net profit comes out to be 46.15 per cent before claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re reproduced as under:- Proviso I. Provided that the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in Sub-clause (iv) or Sub-clause (v) or Sub-clause (vi) or Sub-clause (via) shall make an application in the prescribed form and manner to the prescribed authority for the purpose of grant of the exemption, or continuance thereof, under Sub-clause (iv) or Sub-clause (v) or Sub-clause (vi) or Sub-clause (via) . Proviso IX. Provided also that where an application under the first proviso is made on or after the day on which the Taxation Laws (Amendment) Bill, 2006 receives assent of the President, every notification under the Sub-claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l year immediately preceding the assessment year from which the exemption is sought. 6.3 Applicability - Assessment year 2007-08 onwards. (Emphasis added) 7. It is well-settled that the circulars issued by the CBDT are binding on the revenue authorities. In that regard reliance is placed on the judgments of Hon'ble the Supreme Court rendered in the cases of P.R. Prabhakar v. CIT (2006)284 ITR 548 :154 Taxman 503, Union of India v. Azadi Bachao Andolan (2003)263 ITR 706: 132 Taxman 373 and Commissioner of Customs v. Indian Oil Corpn. Ltd. (2004) 3 SCC 488. 8. It is conceded position that the Assessee-Petitioner has filed the application on 23-9-2008 seeking exemption under Section 10(23C)(vi) in respect of assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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