Ita/643/2016 Of M/S Marimallappas Charities v. The Income Tax Officer Ward - 1 (3)

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF NOVEMBER 27072PRESENT| THE HON’BLE MR. JUSTICE ALOK ARADHE AND| THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD1T.A. NO.643 OF 2016 BEIT WEE M/S. MARIMALLAPPA’S CHARITIES ~ NARAYANASHASTRI ROAD| MYSORE-5/0 OOL| REPRESENTED BY ITS HON. SECRETARY. | APPELLANT| (BY SRI M. VEERABHADRAIAH, ADVOCATE) AND 1.|THE INCOME TAX OFFICER WARD-1(3), MYSORE| VISHWESHWARANAGAR NO.55/1, SHILPASHREE BUILDING|OPPOSITE TO STERLING TALKIESMYSORE-5/0 O87.OPPOSITE TO STERLING TALKIESMYSORE-5/0 O87. 2D |THE COMMISSIONER OF ~ INCOME TAX MYSOREVISHWESHWARANAGARVISHWESHWARANAGAR NO.55/1, SHILPASHREE BUILDING, | OPPOSITE TO STERLING TALKIES MYSORE-5/0 O8/.. RESPONDENTS (BY SRI JEEVAN J. NEERALGI, ADVOCATE) THIS I.T.A. IS FILED UNDER SECTION 2J60-A OF THEI.L.T.ACT, 1961, ARISING OUT OF ORDER DATED 24-06-201PASSED IN ITA NO.1493/BANG/2010 FOR THE ASSESSMENTYEAR 2007-2008, PRAYING TO: I. FORMULATE THE SUBSTANTIAL QUESTION OF LAW ASSTATED THEREIN.. I]. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSEDBY THE ITAT, BENGALURU DATED 24-06-2016 PASSED INLIANO.1493/BANG/2010.FORTHE|YEAR2007-2008, CONSEQUENTLY SET ASIDE THE ASSESSMENT ORDER|DATED 29/12/2019 PASSED BY THE ASSESSING AUTHORITYANDFIRSTAPPELLATEAUTHORLTYORDER.25-10-2010 PASSED IN ITA NO.75/CIT(A)MYS/2009-10RELATING TO ASSESSMENT YEAR 2007-2008. DATED | THIS IL.T.A. COMING ON FOR HEARING, THIS DAY,ALOK ARADHE J.,DELIVERED THE FOLLOWING: JUDGMENT Mr.M.Veerabhadraiah, learned counsel for the aSSe@SSAEC Mr.Jeevan J.Neerlagi, learned counsel for therevenue. 2. This appeal under Section 260-A of the IncomeTax Act, 1961 (hereinafter referred to as ‘the Act’, forshort) has been preferred by the assessee. The subjectmatter of the appeal pertains to the Assessment Year 2007-08. The appeal was admitted by a Bench of this.Court vide order dated 25.10.2017 on the following:substantial questions of law: a)WhethertheAssessing|Officerand|appellateforumshavejurisdiction to adjudicate the genuinenessof the receipts by the trust which Is vestedwith the Commissioner under Sections 17Aand 12AA of the IT Act especially whenSections 12(1) and 2(24)(lia) of the IT Actdeems all income received by the assesseeTrust to the rigor of Sections 11, 12 and13 of the IT Act? Db)WhethertheTribunalISjustifiedIn|lawIn|holdingthattheappellant is not engaged in_ charitableactivities which Its contrary to material onrecord and consequently passing perverseorder and there by denying the appellantthe exemption under section 11 of the Acton the facts and circumstances of theCase?| 3. When the matter was taken up today, learned|counsel for the assessee submitted that the aforesaid|substantial questions of law have already been answeredagainst the revenue by a Bench of this Court in.‘COMMISSIONEROFINCOME-TAXYs,ADICHUNCHANGIRI MAHASAMSTANA MUTT'passed|in ITA No.800/2009 and aforesaid decision was followedby another Division Bench of this Court in ITANo.52/2012 vide judgment dated 14.01.2019. Tneaforesaid submission could not be disputed by thelearned counsel for the revenue. 4. For the reasons assigned in the aforementionedjudgments passed by two Division Benches of this Court, the substantial questions of law framed in this appealare answered in favour of the assessee and against the|revenue. In the result, the order of the Income Tax\AppellateTribunalinsofaras|It|pertainsTO.theAssessment Year 2007-08, is hereby quashed. Accordingly, the appeal is allowed. Sd/-JUDGE Sd/-'JUDGE