Commissioner Of Income Tax, Panchkula v. Haryana Livestock Development Board, Panchkula

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. ITA No.127 of 2009 (O&M)Date of decision: 5.8.2009 Commissioner of Income Tax, Panchkula -----Appellant Vs. Haryana Livestock Development Board, Panchkula -----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOELHON'BLE MRS. JUSTICE DAYA CHAUDHARY Present:-Mr. Yogesh Putney, Sr.Standing Counsel for therevenue. Mr. Rameshwar Malik, Addl.A.G.Haryana for therespondent. Adarsh Kumar Goel,J. The revenue has preferred this appeal under section 260A of the Income Tax Act, 1961 (in short, ‘theAct’) against order dated 18.8.2008 of the Income TaxAppellate Tribunal, Chandigarh Bench (B) Chandigarhpassed in ITA No.576/CHANDI/2008 for the assessmentyear 2005-06, proposing to raise following substantialquestions of law:- “a) Whether in the facts and circumstances ofthe case, the Hon’ble ITAT was right in holding that the interest income derived by the assessee on bank deposits earned by the assessee are exemptunder section 11(1)(a) whereas there is nomaterial evidence on record that there was a ‘legalobligation’ within the meaning of explanation (1)to Section 13 of the Income Tax Act, 1961? b) Whether in the facts and circumstances of thecase the Hon’ble ITAT was right in holding thatinterest on bank deposits is exempt under section12(1) even though these are not voluntarycontributions, as required under section 12(1) ofthe Income Tax Act, 1961?” Learned counsel for the revenue does not disputethat the matter is covered by order of this Court dated15.12.2008 in ITA No.609 of 2007 (The Commissioner of Income Tax, Panchkula v. M/s Haryana CM Relief. Fund, Chandigarh) Accordingly, this appeal is dismissed. (Adarsh Kumar Goel)JudgeJudge (Daya Chaudhary)JudgeJudge