Improvement Trust, Faridkot v. Assistant Commissioner Of Income Tax, Circle-Iii, Ferozepur

CWP No.10265 of 2009 CWP No.10265 of 2009 Date of Order: 20.7.2009 Improvement Trust, Faridkot ...Petitioner Versus Assistant Commissioner of Income Tax, Circle-III, Ferozepur ....Respondent CORAM:HON'BLE MR. JUSTICE M.M. KUMAR HON'BLE MR. JUSTICE JASWANT SINGH Present:Mr. Pardeep Bajaj, Advocate for Mr. R.S. Khosla, Advocate for the petitioner. Ms. Savita Saxena, Advocate for the respondent. 1.Whether Reporters of local papers may be allowed to see the judgment?2.To be referred to the Reporter or not?2.To be referred to the Reporter or not? 3.Whether the judgment should be reported in the Digest? M.M. KUMAR,J Issue raised in the instant petition is whether the petitioner,which is charitable institution, is entitled for registration under Section 12-AA of the Income Tax Act, 1961 (for brevity “the Act”). Petitioner is an Improvement Trust constituted under theprovisions of Punjab Town Improvement Act, 1922 (for brevity “the Act”). The department has filed an appeal bearing ITA No.489 of 2007 in a similarmatter against the order of the Tribunal where the relief was granted to theImprovement Trust, Moga and the Hon'ble Division Bench of this Court hasobserved that the Trust was not carrying on activities of general welfare CWP No.10265 of 2009 covered by the expression “any other object of general public utility” usedin Section 2(15) of the Act. Mrs. Savita Saxena, learned counsel for the respondent hasstated that the matter is squarely covered against the department and infavour of the petitioner by the judgment dated 31.10.2008 rendered in ITANo.489 of 2007 (Annexure P.5) and, therefore, the petitioner deserves to begranted the relief. The learned counsel for the petitioner could not successfullycontrovert the above legal position. In view of the above, the writ petition deserves to be allowed.and demand notice dated 26.12.2008 (Annexure P.1) and assessment orderdated 26.12.2008 (Annexure P.2) are liable to be quashed. Consequently, petition succeeds and the impugned order dated26.12.2008 (Annexure P.2) is quashed. ( M.M. KUMAR )JUDGE July 20, 2009manoj ( JASWANT SINGH ) JUDGE