Summary
The Revenue sought clarification of the Supreme Court's judgment of 19.10.2022 in the Ahmedabad Urban Development Authority batch, which interpreted the "general public utility" limb of Section 2(15) of the Income Tax Act for many kinds of charities. It wanted liberty to redo past assessments and examine eligibility year by year. The Court explained that its conclusions were deliberately final for the assessment years that were before it. Where appeals were decided against the Revenue, those outcomes stand, save where a matter was expressly remitted to the assessing officer. For later assessment years not before the Court, the authorities must apply the law declared to the facts of each year. No further clarification was needed, and the application was disposed of.
Issues
- Whether the judgment interpreting Section 2(15) of the Income Tax Act, 1961 permitted the Revenue to reopen the assessment years decided in it and to examine charitable trusts' eligibility year by year in future.
Provisions considered
- Section 2(15), Income Tax Act, 1961The law declared on the 'advancement of any other object of general public utility' limb applies to future assessment years on each year's facts, while the decided years stand finally determined. (¶¶ 2, 5)
Held
- The conclusions in the judgment were consciously recorded to finally decide the issues for the organisations concerned for the assessment years before the Court, except where a matter was expressly remitted to the assessing officer; appeals decided against the Revenue are final for those years. (¶¶ 4, 5)
- For assessment years the Court was not called upon to decide, the authorities must apply the law declared, having regard to the facts of each year, so no further clarification was required. (¶ 5)
Result
Miscellaneous Application No. 1849 of 2022 in Civil Appeal No. 21762 of 2017 disposed of with the explanation recorded; no further clarification issued.