Supreme Court of India

American Hotel & Lodging Assn. Edu. Ins. v. Central Board of Direct Taxes & Ors.

Neutral citation
Reported as [2008] 8 S.C.R. 117
Bench S.H. Kapadia and B. Sudershan Reddy JJ.
Decided 9 May 2008
Status Partly Overruled

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

3 Supreme Court benches have cited this judgment.

What the Court ordered

We are of the view that the Monitoring Conditions in the third proviso like application/utilization of income, pattern of investments to be made etc. could be stipulated as conditions by the PA sub- H 146 SUPREME COURT REPORTS [2008] 8 S.C.R. A ject to which approval could be granted.

Judgment, page 29

From the headnote

Income Tax Act, 1961- s. 10 (23 ) (vi) and its third pro- visa (as inserted by Finance Act, 1998) - Tax exemption - To assessee as an educational institution - Granted prior to Fi- c nance Act, 1998 - Thereafter application for seeking initial approval in terms of s. 10 (23 ) (vi) rejected by Prescribed Authority- Propriety of- Held: By introduction of third proviso to the Section, Prescribed Authority could stipulate monitor- t ing conditions before grant of initial approval for the first time - But in the cases where the applicant had earlier obtained exemption, tha approval cannot be

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