Ita/269/2007 Of The Commissioner Of Income Tax v. M/S.garden City Education Trust

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 24 DAY OF FRBRUARY 2014 PRESEHBN THR HON’BLE MR.JUSTICE DILIP B.BHOSALE ANT) THR HON’BLEBE MR.JUSTICBK B.MANOH 1.T.A.NO.269 / 20CvW1.T.A.NOS210TO277/{[20a1.T ANO499 /2007 LT.A.NO.269 / 200 BEBEITWEH 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore.~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act,1961, arising out of order dated 11.08.2006 passed inITA No.3127/Bang/2004 for the Assessment year 1997-98 praying to formulate the substantial questions of lawstated therein and allow the appeal and set aside theorderpassedbytheITAT,Bangalore,in.ITANo.3127/Bang/2004 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. I1.T.A.O.210/2007: BEREITWH 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director ofIncome Tax (Exemptions),Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore.~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.3126/Bang/2004 for the Assessment year 1996-97 praying to formulate the substantial questions of lawstated therein and allow the appeal and set aside the orderpassedbytheITAT,Bangalore,in.ITANo.3126/Bang/2004 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T ANO2/1/2007: BEBEITWEH 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore... RESPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.2926/Bang/2004 for the Assessment year 2001-2002 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.2926/Bang/2004 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T ANO2172/2007: BEBEITWEH 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. .. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]Stage, IndiranagarBangalore-560 038Bangalore.~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) 1.T ANO2172/2007: BEBEITWEH 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. .. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]Stage, IndiranagarBangalore-560 038Bangalore.~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.2925/Bang/2004 for the Assessment year 2000-2001 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.2925/Bang/2004 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T.A.NO2/3/2007: BETWEEN: 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore... RESPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.2924/Bang/2004 for the Assessment year 1999-2000 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.2924/Bang/2004 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T ANO2174/2007: BEBEITWEH 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. .. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]Stage, IndiranagarBangalore-560 038Bangalore.~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.1301/Bang/2003 for the Assessment year 1998-1999 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.1301/Bang/2003 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner and confirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T ANO.275/2007: BRITWHBRE 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. 2 |The Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore... RESPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.1300/Bang/2003 for the Assessment year 1997-1998 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.1300/Bang/2003 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T ANO.276/2007: BRITWHBRE APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore... RESPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.1300/Bang/2003 for the Assessment year 1997-1998 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.1300/Bang/2003 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T ANO.276/2007: BRITWHBRE 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. 2 |The Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore. ~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.1298/Bang/2003 for the Assessment year 1990-1996 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.1298/Bang/2003 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T ANO21/2007: BEREITWH 1.The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. oDThe Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |1["*]stage, IndiranagarBangalore-560 038Bangalore... RESPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 11.08.2006 passed inITA No.1299/Bang/2003 for the Assessment year 1996-1997 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.1299/Bang/2003 dated 11.08.2006 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. 1.T.A.NO.499 / 20 BBRITWRE 1]The Commissioner of Income Tax, Central Circle, C R Building, Queens Road, Bangalore. 2 |The Assistant Director of Income Tax (Exemptions), Circle — 17(1), C R Building, Queens Road, Bangalore. .. APPELLANTS (By Sri K.V.Aravind, Adv.) AND: M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |L["*]stage, IndiranagarBangalore-560 038Bangalore.~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 12.01.2007 passed inITA No.2709/Bang/2004 for the Assessment year 1990-1996 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.2709/Bang/2004 dated 12.01.2007 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. These appeals coming on for admission this day,|DILIP B.BHOSALE J,delivered the following:- PC;| M/s.Garden City ©Education Trust,No.628/C, 11[th]Cross |L["*]stage, IndiranagarBangalore-560 038Bangalore.~_ RBSPONDENT. (By Sri S Parthasarathi, Adv. alongwith Sri Mallharao, Adv.) This appeal is filed under Section 260-A of I.T.Act, 1961, arising out of order dated 12.01.2007 passed inITA No.2709/Bang/2004 for the Assessment year 1990-1996 praying to formulate the substantial questions oflaw stated therein and allow the appeal and set asidethe order passed by the ITAT, Bangalore, in ITANo.2709/Bang/2004 dated 12.01.2007 and confirm theorder passed by the Appellate Commissioner andconfirm the order passed by the Asst. Director of IncomeTax (Exemptions), Circle-17(1), Bangalore. These appeals coming on for admission this day,|DILIP B.BHOSALE J,delivered the following:- PC;| These income tax appeals are directed against thecommon order dated 11.8.2006 rendered by Income TaxAppellate Tribunal, Bangalore Bench B’ (for short theTribunal’)in.ITANos.1298/Bang/2003TO 1301 /Bang/200382924 /Bang/2004TO 2926/Bang/2004, 3126/Bang/2004 and 3127/2004pertaining to the assessment years1995-96 to 1997-98. | 2 |The appeals before the Tribunal were arisingfrom three orders dated 1.8.2003, 29.7.2004 and16.8.2004. The order dated 1.8.2003 was passed by theCommissioner of Income Tax (Appeal) (for shortFCIT(A)“") in ITA Nos.1, 2, 3 and 7/Exemp/CIT(A)V/2003-04. The second order dated 29.7.2004 was.passed in ITA Nos.4 to 6/Exemp/CIT(A)-V/2003-04 andthe order dated 16.8.2004 was passed in ITA Nos.38—and 39/Exemp/CIT(A)-V/2003-04. The Tribunal by itsorder dated 11.8.2006 confirmed the findings recordedby the CIT(A) vide its orders dated 1.8.2003, 29.7.2004and 16.8.2004. The CIT(A) vide its order dated 1.8.2003directedtheAssessingAuthorityTO grantthe respondent/assessee the benefit of exemption undersection 10(22) of the Income Tax Act, 1961 (for short“the Act”). While the order dated 29.7.2004, the CIT(A)allowed the appeal and granted exemption undersection 10(23C)(vi) of the Act. Similarly vide order dated16.8.2004, the CIT(A) granted exemption to therespondent/assessee under Section 10(22) of the Act. © 3.|We have perused the common order dated11.8.2006 and we find that the Tribunal has notsindependently considered as to why the respondent/assessee is entitled for benefit/exemption either undersection 10(22) or under Section 10(23C)(vi) of the Act. —In view thereof, learned counsel for the parties havefairly stated that all these appeals may be remanded tothe Tribunal to consider them afresh and, in particular,whether and why the respondent/assessee is entitled tobenefit/exemption under Sections 10(2) and 10(23C)(vi)of the Act. Hence, we pass the following: ORDER The common order dated 11.8.2006 passed by theTribunal is set aside. The Income Tax Appeals No.1298/Bang/2003 to1301 /Bang/200382924 /Bang/2004TO 2926/Bang/2004, 3126/Bang/2004 and 3127/2004are restored to file. The Tribunal shall consider these appeals afreshand record its findings on the question whether therespondent/assessee is entitled for benefit/exemptionunder Sections 10(22) and 10(23C)(vi) of the Act. All contentions of the parties are kept open It is needless to mention that the parties will be atliberty to file additional evidence/material, if they sodesire, before the Tribunal in support of their case. Itismade clear that we have not examined merit of the case. With these observations, the appeals are disposedot. No cost... ITA No.499 /2007 This income tax appeal is directed against theorder dated 12.1.2007 passed against the very same respondent/assessee pertaining to the assessment year1995-96 in ITA No.2709/Bang/2004. The order passed by the Tribunal reads thus: “The revenue has filed this appeal forthe asst. year 1995-96 on the ground thatthe learned CIT(A) was not justified inholding that the assessee trust is entitled forexemption u/s 10(22) of the I.T.Act. All contentions of the parties are kept open It is needless to mention that the parties will be atliberty to file additional evidence/material, if they sodesire, before the Tribunal in support of their case. Itismade clear that we have not examined merit of the case. With these observations, the appeals are disposedot. No cost... ITA No.499 /2007 This income tax appeal is directed against theorder dated 12.1.2007 passed against the very same respondent/assessee pertaining to the assessment year1995-96 in ITA No.2709/Bang/2004. The order passed by the Tribunal reads thus: “The revenue has filed this appeal forthe asst. year 1995-96 on the ground thatthe learned CIT(A) was not justified inholding that the assessee trust is entitled forexemption u/s 10(22) of the I.T.Act. D2 After hearing both the sides, we findthat the issue is already covered by thedecision of the Tribunal in assessee’s own|case for the asst. years 1995-96 to 2001-02. —A copy of the order passed by the Tribunal inITA Nos.1298 to 1301, 2924 to 2926, 3120and 3127/Bang/03 and 04 dated 11.8.2006.has been placed before us. From the said|order, we find that the present appeal issquarely covered by the aforesaid decision ofthe Tribunal in assessee’Ss own case, infavour of the assessee. In view of thecircumstances above, the present appeal is dismissed. In the result, the appeal is dismissed.” From perusal of the order passed by the Tribunal,it is clear that this order is passed in view of the orderdated 11.8.2006 for the assessment year 1995-96 to.1997-1998. In view thereof and for the reasons|recorded while disposing of ITA No.269/2007 c/w ITA.Nos.270 to 277/2007, this appeal is also allowed. The order dated 12.1.2007 passed by the Tribunal is setaside and ITA No.2709/Bang/2004 is restored to file. The Tribunal shall consider and decide the appealafresh in the light of the observation made in the orderpassed in ITA Nos.269 to 2/77/2007, on merit inaccordance with law. Appeal is accordingly disposed of. No costs. bkm. od/-| JUDGE. sd/-|JUDGE.