Ita/100072/2015 Of The Commissioner Of Income Tax v. The Nagarbail Salt-Owners

IN THE HIGH COURT OF KARNATAKA DATBD THIS THE 19 DAY OF NOVEMBER 2Z0O1 PRESENT THE HON’BLE MR. JUSTICE ASHOK B.HINCHIGERI ANDI THE HON’BLE MR.JUSTICE P.S.DINESH KUMAR IL.T.A.NO.100072/201 BETWEEN 1.THR COMMISSIONER OF INCOME TAXCHNTRAL REVBENUB BUILDINATTAVAR, MANGALURUCHNTRAL REVBENUB BUILDINATTAVAR, MANGALURU 2.THR INCOME TAX OFFICERWARD-2,SANTERI KRUJAPA BUILDINGHABBUWADA, KARWARWARD-2,SANTERI KRUJAPA BUILDINGHABBUWADA, KARWAR (BY SRI Y V RAVIRAJ, ADVOCATE) _. APPKBLANTS AN] THR NAGARBAIL SALT-OWNERSCO-OPERATIVE SOCIBTY LIMITBDSANIKATTE, GOKARNA, KUMTA-5381 32 (BY SRI ASHOK KULKARNI &SRI H R KAMBIYAVAR, ADVOCATES) ... RESPONDENT THIS ITA IS FILED U/S.2600A OF THE INCOME-TAXACT 1961, PRAYING TO FORMULATE THE SUBSTANTIALQUESTION OF LAW STATED ABOVE AND TO ALLOW THE APPBRAL AND SBT ASIDE THR ORDERS PASSKBD BY TINCOME TAX APPELLATE TRIBUNAL, PANAJI BENCH,PANAJI, IN ITA NO.2559/PNJ/2014, DTD: 23.01.2015 FOTHRE ASSEHESSMENIT YRKAR 2O10-11 AND CONFIRORDER PASSED BY THE INCOME TAX OFFICER, WARD-2,SANTERI KRUJAPA BUILDING, HABBUWAD, KARWAR. THIS ITA HAVING BEBEBN HBARD AND RESERVEFOR JUDGMENT, THIS DAY,P.S.DINESH KUMAR. J.PRONOUNCEDTHERE FOLLOWING: JUDGMENT This appeal was presented by the Revenuechallenging the common order dated 23.1.20195, iL.T.A.Nos.252 to 256 & 377/PNJ/2014 so tar as itrelates to ITA 255/PNJ/2014 for the assessment yearA2O1O-11 2. The learned standing Counsel for the Revenue and the learned Counsel for the assessee were heard onthe following substantial question of law; “Whethertherespondentsocietyassessed to tax on its income as ‘person’ asdefined under Section 2(31) of Income Tax Act,1961, is entitled to claim exemption over itsprofits paid to its members and claim it as expenditure in the accounts before offering theprofitfor tax?” 3. By a detailed order of even date, this Court hasdismissed I.T.A.No.100067/2015 for the assessmentyear 2006-07. Following the said judgment, this appealis alsodismissedwithout any order as to costs od/-JUDGE od/-JUDGE