Ita/644/2016 Of M/S Marimallappas Charities v. The Dy Commissioner Of Income Tax, Circle-1(1)

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.644 OF 2016 BEIT WEE M/S. MARIMALLAPPA’S CHARITIES ~NARAYANASHASTRI ROAD|MYSORE-5/0 OOL|REPRESENTED BY ITSHON. SECRETARY — APPELLANT (BY SRI M. VEERABHADRAIAH, ADVOCATE) AND: 1.|THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1) MYSORE| VISHWESHWARANAGAR NO.55/1, SHILPASHREE BUILDING| OPPOSITE TO STERLING TALKIESMYSORE-5/0 O8/.MYSORE-5/0 O8/. 2D |THE COMMISSIONER OF ~ INCOME TAK MYSORE VISHWESHWARANAGAR NO.55/1, SHILPASHREE BUILDING ©OPPOSITE TO STERLING TALKIESMYSORE-5/0 O8/.. RESPONDENTSOPPOSITE TO STERLING TALKIESMYSORE-5/0 O8/.. RESPONDENTS (BY SRI JEEVAN J. NEERALGI, ADVOCATE) THIS I.T.A. IS. FILED UNDER SECTION 260-A OFI.L.T.ACT, 1961, ARISING OUT OF ORDER DATED 24-06-201PASSED IN ITA NO.675/BANG/2014, FOR THE ASSESSMENTYEAR 2010-2011, PRAYING TO:I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW ASSTATED THEREIN..I]. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSEDBY THE ITAT, BENGALURU DATED 24-06-2016 PASSED INLIANO.6/5/BANG/2014|FOR|THE|YEAR2010-2011,|CONSEQUENTLY SET ASIDE THE ASSESSMENT ORDER|DATED 29/01/2013 FOR THE YEAR 2010-2011 CONFIRMINGORDER|DATED17-08-2013.PASSED|IN|LIANO.95/CIT(A)MYS/2012-13RELATING|TO)ASSESSMENT|YEAR 2010-2011.. THIS IL.T.A. COMING ON FOR HEARING, THIS DAY,ALOK ARADHE J.,DELIVERED THE FOLLOWING: JUDGMENT Mr.M.Veerabhadraiah, learned counsel for theaSSe@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 2010-11. 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)WhethertheTribunalIScorrect in law in_ reversing the wellreasoned order of the Commissioner ofIncome Tax (Appeals) Mysore for the Year2010-2011 and holding that the voluntarycontributions received by the appellant arein the nature of capitation fees andtherefore taxable in the hands of theappellant on the facts and circumstancesof the case? 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 Bencn of this Court in‘COMMISSIONEROFINCOME-TAXYs,ADICHUNCHANGIRI MASAMSTANA MUTT"passed in.ITA No.800/2009 and aforesaid decision was followed by.another division bench of this Court in ITA No.52/2012|vide judgment dated 14.01.2019. The aforesaid|submission could not be disputed by the learned counselfor 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. 5. In the result, the order of the Income Tax|AppellateTribunalinsofaras|It|pertainsTO.theAssessment Year 2010-11, is hereby quashed. Accordingly, the appeal is allowed. Sd/-JUDGE Sd/-'JUDGE