SATISH CHANDRA,J. - (1.) HEARD Sri Shanti Bhushan, Senior Advocate, assisted by Sri Ravi Prakash Gupta and Sri P.K.Sinha for the petitioner and Sri D.D.Chopra, learned Senior Standing Counsel for the opposite parties.
(2.) IN the instant writ petition, the petitioner has challenged the order dated 11.4.2008 passed by the Chief Commissioner of Income Tax, Lucknow by which he has rejected the application dated 4.2.1999 moved by the petitioner for grant of approval of the prescribed authority under sub-clause (vi) of Clause (23C) of Section 10 of the Income Tax Act, 1961 (hereinafter referred to as the Act) for the Assessment Years 1999-2000, 2000-01 and 2001-02. The brief facts of the case on the basis of material on record and as alleged in the writ petition are that the petitioner is a society registered under the Societies Registration Act, 1860 in the name and style "City Montessori School" (hereinafter referred to as C.M.S.) and registration to the petitioner was granted on 4.6.1963 bearing Registration no. 111 of 1963-64. The petitioner has 20 branches in different parts of Lucknow City. In the beginning, the income of the petitioner was not taxable, hence no Income Tax Returns were filed up to the assessment year 1991-92. The society has been running the school for classes from K.G. to XIIth. Over the years, the school has grown in size with thousands of boys and girls studying in its several branches in the city of Lucknow. It was only when the notice under Section 142 (1) of the I.T.Act, 1961 was issued to the petitioner for filing return of the income-tax for the assessment year 1991-92, the petitioner filed its return first time on 25.2.1992 by showing the income "nil" and also claimed exemption under erstwhile Section 10(22) of the Act. However, the Assessing Officer as well as C.I.T.(A) did not allow exemption on the interest income from fixed deposits received by the petitioner.
(3.) THE Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal) vide its judgment and order dated 31.1.1996 observed that no tax could be levied as it is purely an educational institution and not existing for purposes of profit and after the judgment of the Tribunal, the petitioner applied under Section 12A for exemption from income tax under Sections 11 and 12 and also for approval under Section 80G of the Act.;