…Petitioner(S)/Appellant(S v. Union Of India And Ors

IN THE HIGH C0URT 0F JAMMU & KASHMIR AND LADAKHAT SRINAGAR ITA No. 1/2017 Srinagar Development Authority …Petitioner(s)/appellant(s) Through: Mr. A. Hanan, Advocate vice Mr. Z. A. Shah, Sr. Advocate Vs. Union of India and Ors. ...Respondent(s) Through: Mr. T. M. Shamsi, DSGI Mr. Areeb Kawoosa, Advocate CORAM: HON’BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE M. A. CHOWDHARY, JUDGE O R D E R 22.08.2023 N. Kotiswar Singh, CJ (Oral) 1.Heard learned counsel for the parties. 2.The present appeal has been preferred against the decision of the Income Tax Authority and the order passed by the Commissioner of Income Tax, Jammu rejecting the application for registration under Section 12 (A) of the Income Tax Act, 1961, as a charitable trust. Tax Authority and the order passed by the Commissioner of Income Tax, Jammu rejecting the application for registration under Section 12 (A) of the Income Tax Act, 1961, as a charitable trust. 3.It is the case of the respondents that similar issue was raised by the Jammu Development Authority, seeking registration as a charitable trust under Section 12 (A) which was rejected by the Income Tax Authorities against which an appeal was preferred before this Court at Jammu Wing, which was numbered as ITA No. 164/2012. The said appeal was dismissed by this Court holding that no question of law much less substantial question of law is involved and accordingly dismissed the appeal vide order dated 12.11.2013. The said decision of this Court was subsequently challenged Development Authority, seeking registration as a charitable trust under Section 12 (A) which was rejected by the Income Tax Authorities against which an appeal was preferred before this Court at Jammu Wing, which was numbered as ITA No. 164/2012. The said appeal was dismissed by this Court holding that no question of law much less substantial question of law is involved and accordingly dismissed the appeal vide order dated 12.11.2013. The said decision of this Court was subsequently challenged before the Hon’ble Supreme Court which was also dismissed the same vide order dated 24.07.2014, in SLP No. 4990/2014. 4.It is submitted by learned counsel for the respondents that since Srinagar Development Authority is similarly situated as the Jammu Development Authority, both being created under the J&K Development Act and are sister concerns having similar functions and responsibilities but for two different divisions of Jammu and Kashmir. The learned counsel further argued that if the prayer of the Jammu Development Authority for registration as a charitable trust was rejected by the Authorities, a similar fate must prevail on the Srinagar Development Authority. Development Authority is similarly situated as the Jammu Development Authority, both being created under the J&K Development Act and are sister concerns having similar functions and responsibilities but for two different divisions of Jammu and Kashmir. The learned counsel further argued that if the prayer of the Jammu Development Authority for registration as a charitable trust was rejected by the Authorities, a similar fate must prevail on the Srinagar Development Authority. 5.We have also perused the order passed by the Commissioner Income Tax, Jammu dated 28.09.2010 rejecting the application of the Srinagar Development Authority for registration as a charitable trust which order was upheld by the Income Tax Appellate Tribunal Amritsar vide order dated 25.07.2016, and accordingly, made the following conclusion relying on the decision in Jammu Development Authority (supra). In ITA No. 164/2012. Jammu dated 28.09.2010 rejecting the application of the Srinagar Development Authority for registration as a charitable trust which order was upheld by the Income Tax Appellate Tribunal Amritsar vide order dated 25.07.2016, and accordingly, made the following conclusion relying on the decision in Jammu Development Authority (supra). In ITA No. 164/2012. 5.We have also perused the order passed by the Commissioner Income Tax, Jammu dated 28.09.2010 rejecting the application of the Srinagar Development Authority for registration as a charitable trust which order was upheld by the Income Tax Appellate Tribunal Amritsar vide order dated 25.07.2016, and accordingly, made the following conclusion relying on the decision in Jammu Development Authority (supra). In ITA No. 164/2012. Jammu dated 28.09.2010 rejecting the application of the Srinagar Development Authority for registration as a charitable trust which order was upheld by the Income Tax Appellate Tribunal Amritsar vide order dated 25.07.2016, and accordingly, made the following conclusion relying on the decision in Jammu Development Authority (supra). In ITA No. 164/2012. “Jammu Development Authority (supra) as noted, has been upheld up to the Hon’ble Supreme Court. The arguments of the assesse before us in the present case, stand effectively considered and met in Jammu Development Authority (supra). Too, the case law relied on, as against Jammu Development Authority (supra), are not applicable. Since Jammu Development Authority (supra) concerns an Authority created under the Jammu & Kashmir Development Act, 1970, which statute is also the Mother Statute of the present assesse/Authority, and the Tribunal decision in the case of Jammu Development Authority has been confirmed up to the Hon’ble Supreme Court, reliance by the assesse on the Tribunal decisions in the cases of various other development Authorities is of no avail to it. For the same reason, the decision of the Hon’ble Punjab and Haryana High Court, which concerns an Improvement Trust and not any Development Authority likes the assesse is even further off course. The order under appeal is thus confirmed and we hold that the assesse has rightly been held as not entitled to registration under the Act. The assesses grievance is without any merit and it is rejected as such.” registration under the Act. The assesses grievance is without any merit and it is rejected as such.” 6.Thus from the above, it is clearly evident that the impugned order challenged by the Appellant in the present proceeding was rendered relying on the aforesaid decision in Jammu Development Authority (supra) which has been already upheld by the Hon’ble Supreme Court and as such, we cannot take any different view and, accordingly, we are of the view that there is no merit in this appeal, and accordingly, the same is dismissed. challenged by the Appellant in the present proceeding was rendered relying on the aforesaid decision in Jammu Development Authority (supra) which has been already upheld by the Hon’ble Supreme Court and as such, we cannot take any different view and, accordingly, we are of the view that there is no merit in this appeal, and accordingly, the same is dismissed. (M. A. CHOWDHARY) (N. KOTISWAR SINGH) JUDGE CHIEF JUSTICE SRINAGAR 22.08.2023 Aadil