Delhi HC Restores Section 10(23C)(vi) Exemption as Franchise Fees Held Incidental

DPS Society Vs UOI (Delhi High Court) The Delhi High Court allowed writ petitions challenging orders dated 26.02.2009 whereby exemption under Section 10(23C)(vi) of the Income Tax Act, 1961 was withdrawn for assessment years 2002-03 to 2007-08. The withdrawal followed an earlier order dated 30.04.2008 for assessment year 2008-09. Counsel for the petitioner submitted that the earlier order had already been set aside by the High Court in a judgment dated 03.04.2018, which held that charging franchise fees for schools run under the society’s aegis was merely an incidental activity and could not...