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challenging orders dated 26.02.2009 whereby exemption under Section 10(23C)(vi) of the Income Tax Act, 1961 was withdrawn for assessment years 2002-03 to 2007-08.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 be treated as business income. It was also noted that the Special Leave Petition against that judgment had been rejected by the Supreme Court. The petitioner argued that the facts in the present writ petitions were identical and therefore deserved similar relief. The Revenue’s counsel did not dispute this position of fact and law. In view of the earlier binding judgment, the Court allowed the writ petitions, quashed the impugned orders dated 26.02.2009, and directed the respondents to pass consequential orders in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COU.RT
1. These writ petitions have been filed against order(s) dated 26.02.2009 passed by respondent no.5, whereby the exemption under Section 10(23C)(vi) of the Income Tax Act, 1961 (hereinafter referred to as “The Act of 1961”) for assessment year 2005-06 to 2007-2008 in W.P.(C) 9847/2009 and AY 2002-03 to 2004-05 in W.P.(C) 9848/2009 has been withdrawn following the order dated 30.04.2008 passed by the respondent no. 5 himself for the AY 2008-09.
