TMI Blog2011 (4) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... r the sake of convenience, they are heard together and disposed of by way of this common order. 2. The facts of the case are given at para 1.1and 1.2 of the CIT(Appeals) order for asstt.year 2000-01 which are extracted below for ready reference: 1.1 The Americal Hotel Lodging Educational Institute (Appellant) is a wholly owned subsidiary of the Americal Hotel Motel Association set up in the year 1970. The appellant is enjoying tax exemption u/s 501(c)(3) as an Educational Institution under the Internal Revenue Code of 1954 in USA. In 1993, the National Council of Hotel Management Catering Technology, the apex Indian body overseeing hotel management and catering education under the Ministry of Tourism signed a Memorandum of Und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of exemption and assessing the total income at net income disclosed in the return. 3. The first ground, regarding the claim of exemption u/s 10(23C)(vi), was decided against the assessee by the CIT(Appeals) by observing as follows : 3.3 I have examined the claim of appellant and I have perused the order of Hon ble Delhi High Court and I have also perused the order of CIT(A)- XXIX in A.Y. 1999-2000. The facts need not be reiterated. Following the order of Hon ble Delhi High Court, the claim of appellant of being entitled to exemption u/s 10(23C) is rejected. Appeal on ground of appeal no.2 is dismissed. The other issues were also decided against the assessee. Aggrieved, the assessee filed appeals before us. 4. The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or taxes in the circumstances was arbitrary. He submitted that the High Court has passed an order in the Writ Petition on 30th June, 2010 which is reported in 192 Taxman 275 (Bom.) wherein at page 286 it read as follows : Hence, following order : (i) The prescribed authority is directed to pass orders on the applications for approval made by the petitioner for assessment years 2002-03 to 2006-07 expeditiously and in any event within a period of two months from today; (ii) The conditions imposed by the Central Board of Direct Taxes in its order dated 3-11-2009, while granting approval to the petitioner under section 10(23C)(vi) including the condition that the petitioner must apply Seventy Five per cent of its total income for educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... developments subsequent to the passing of the assessment order. He agreed that the AO should determine the surplus and also grant time to the assessee to apply 75% of its total income for educational purposes in India. 6. After hearing rival contentions, we agree with the rival submissions that the issue should be set aside to the file of the AO for fresh adjudication in terms of the directions of the Hon ble Bombay High Court vide its order dated 30th June, 2010. The AO is directed to determine the surplus, after giving adequate opportunity to the assessee and also to provide, reasonable period to the assessee for compliance of monitoring conditions. The AO in his order dated 19-01-2011, has not followed the directions of the jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X
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