Arsha Vijnana Trust Vs Central Board of Direct Taxes (Supreme Court of India)
During the course of hearing, learned senior advocate appearing for the appellant states that he has instructions not to press the present appeal as the denial of grant of exemption/benefit under Section 80G of the Income Tax Act, 1961 even if set aside would be of no consequence. Further, the appellant-assessee is primarily aggrieved by the adverse remarks regarding the contents of the books published by the appellant-trust. Our attention, in this connection, is drawn to the observations made in the impugned judgment passed by the High Court dated 14.08.2007, which has directed that personal remarks made against the authors-cum-Founder Chairman of the appellant-trust in the order passed by the Director of Income Tax (Exemptions), Hyderabad dated 31.01.2003 are set aside.
We are of the view that the judgment of the High Court, in fact, expunges, sets aside or strikes off the remarks made by the Director of Income Tax (Exemptions), Hyderabad on the contents of the books/publications and not just the remarks against the authors-cum- Founder Chairman of the appellant-trust. To obviate any doubt, we clarify that the remarks made by the Director of Income Tax (Exemptions), Hyderabad starting from “Against this argument of assessee my observation is that the assessee is himself stating that it is not solely the statement of the object clause which is to be examined but also the nature of the activities undertaken. This is a political ambition disguised as Dharma and claimed as charity. I fail to convince myself to appreciate such acts to be acts of charity as per Income tax Act.” shall be treated as expunged and erased from record.
We also take the statement made by learned senior advocate for the appellant to not press the appeal on record.
We deem it appropriate to clarify that in case the appellant – assessee makes a fresh application for exemption under Section 80G of the Income Tax Act, 1961 or any other provision, the same would be considered and examined in accordance with law.
It will also be open to the appellant – assessee to show that the judgment of the High Court is distinguishable and it would not apply in view of change of circumstances, the law as applicable, or principles of res-judicata should not be applied.
Recording the aforesaid, the appeal is disposed of without any order as to costs.
Pending application(s), if any, shall stand disposed of.
The appeal is disposed of in terms of the signed order. Pending application(s), if any, shall stand disposed of.
