Commissioner Of Income Tax-Ii, Chandigarh v. M/S Sikh Education Society, Sector 26, Chandigarh

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.A. No. 838 of 2008 (O&M) DATE OF DECISION: 3.8.2009 Commissioner of Income Tax-II, Chandigarh Versus M/s Sikh Education Society, Sector 26, Chandigarh ..........Appellant ..........Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MRS. JUSTICE DAYA CHAUDHARY Present:-Ms. Urvashi Dhugga, Advocatefor the appellant. Mr. Rajiv Sharma, Advocatefor the respondent. **** ADARSH KUMAR GOEL, J. (Oral) 1.The revenue has preferred this appeal under Section 260A ofthe Income Tax Act, 1961 (for short, “the Act”) against the order of IncomeTax Appellate Tribunal, Chandigarh Bench-B dated 30.6.2008 passed inITA No. 315/Chandi/2008 for the assessment year 2005-06, proposing toraise following substantial question of law:- “Whether on the facts and circumstances of the caseand in law, the Hon'ble ITAT was justified in holding, thatthe mere fact that assessee was a Society/otherinstitution and not a trust would not disentitle it from theexemption under section 11/12 of the Act, withoutappreciating the fact that the assessee was Registeredunder Societies Act, 1860 and not under Indian TrustAct, 1882 as such does not qualify for exemption u/s 11 (1) (a) of the Income Tax Act, on the income which isderived from the property not held under a trust.” 2.The assessee is running a educational institution and claimedexemption under Section 11 (2) of the Act in respect of income derivedfrom interest of saving bank account and Fixed Deposit Receipts. TheAssessing Officer disallowed the said exemption on the ground that theassessee was only a society and not a trust. This view was reversed bythe CIT(A) as well as by the Tribunal. 3.Learned counsel for the assessee relies upon order of thisCourt dated 15.12.2008 passed in ITA No. 609 of 2007 (The Commissionerof Income Tax, Panchkula Vs. M/s Haryana C.M. Relief Fund, Chandigarh),wherein, it was held that in view of the explanation to Section 13 (1) of theAct, the term 'Trust', includes any other legal obligation, once the propertywas for charitable purpose. The said order was followed in the case of theassessee on 16.3.2009 in ITA No. 728 of 2008. 4.Learned counsel for the appellant submitted that claim of theassessee being under Section 10 (23C), exemption under Section 11 of theAct could not be allowed. This is not the point raised or considered in theorder of the Tribunal or even in the appeal filed in this Court. Thus, thisquestion cannot be allowed to be raised. 5.No substantial question of law arises. The appeal isdismissed. (ADARSH KUMAR GOEL) JUDGE August 03, 2009pooja (DAYA CHAUDHARY)JUDGE Note:-Whether this case is to be referred to the Reporter .......Yes/No