D.b. Income Tax Appeal v. M/S Birla Institute Of Technology & Science, Pilani, Rajasthan

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH ATJAIPUR D.B. Income Tax Appeal No. 630 / 2008Commissioner Of Income Tax Jaipur-III, Jaipur ----Appellant Versus M/S Birla Institute Of Technology & Science, Pilani, Rajasthan ----Respondent _____________________________________________________ For Appellant(s) : Mr. Daksh Pareek for Mr. Sameer Jain For Respondent(s) : Mr. Manish Sharma _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE INDERJEET SINGHJudgment 01/08/2017 1. By way of this appeal, the appellant has challenged thejudgment and order passed by the tribunal whereby the tribunalhas allowed the appeal of the assessee. 2.This court while admitting the appeal on 18.02.2009 hasframed following substantial question of law which reads asunder:- “Whether in the facts and circumstances ofthe case the Hon. ITAT was right and justifiedin law in holding that corpus fund of therespondent was eligible for exemptionu/s10(23C)(vi) of the Income Tax Act, 1961by wrongly assuming that the entire corpusfind represents assets being equity of publiccompany as required under clause (b)(ia) toproviso 3[rd] to Section 10(23C)(vi), whereasthe factual position is that the corpus fundincluded investments in bonds and incomeplan of the several mutual funds?” 3.When the matter was argued on 05.07.2017, counsel for theappellant has taken us to the judgment of the tribunal wherebythe tribunal has reversed the view taken by the CIT(A) and hasallowed the appeal preferred by the assessee and stated that it iscontrary to the investment which was made, which are notpermitted under Section 12-A and more particularly Section10(23C)(vi). However, after the argument is over, we havedirected the counsel for the assessee to file specific affidavit whichcame to be filed. Counsel for the assessee has specifically statedthat the investments made are squarely covered under theexemption provided under Section 10(23C)(vi) and as per Clausexii of sub-Section 5 of Section 11 read with Rule 17(C) of IncomeTax Rules. 4. Taking into consideration, the provision of Section 10(23C)(vi) and as per Clause xii of sub-Section 5 of Section 11 read withRule 17(C) of Income Tax Rules, the investments made are fullypermissible. 5.In that view of the matter, the issue is answered in favour ofthe assessee and against the department. 6.The appeal stands dismissed. (INDERJEET SINGH),J. (K.S. JHAVERI),J. Jyoti Item No.6