Rc/40/1998 Of M/S.apsrtc. Hyderabad v. The Commissioner Of Income Tax Ap-I Hyd

THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY AND THE HON’BLE SRI JUSTICE CHALLA KODANDA RAM R.C.No.40 of 1998 ORDER:(Per the Hon’ble Sri Justice L.Narasimha Reddy) This R.C. is filed at the instance of APSRTC, which feltaggrieved by the order, dated 31.12.1996 passed by the HyderabadBench ‘A’ of the Income Tax Appellate Tribunal, inI.T.A.No.1717/Hyd/1995. Heard Sri A.V.Krishna Koundinya, learned Senior Counsel forthe applicant, and Sri S.R.Ashok, learned Senior Counsel for therespondent. The following questions are referred to this Court by theTribunal in an application filed by the respondent: 1. “Whether on the facts and in thecircumstances of the case, the Tribunal wasright in law in holding that the applicant was notentitled to deduction under S.11 of the IncomeTax Act, 1961, on the ground that the applicantcorporation carried on the work of theapplicant, ignoring the fact that by statute theemployees of the corporation are regarded asa class of beneficiaries of the applicant? 2. Whether on the facts and in thecircumstances of the case the Tribunal wasright in law in holding that the salariedemployees were not beneficiaries in the teethof S.30 of the Road Transport Act, 1950? 3. Whether on the facts and in thecircumstances of the case, the Tribunal wascorrect in not considering the distinctionbetween an organisation carrying on business and an organisation carrying on the activitieson business principles brought out by theHon’ble Supreme Court in the applicant’s owncase as reported in 159 ITR page 1, for thepurpose of considering the applicability ofS.11(4A) of the Income Tax Act, 1961?” This, in fact, is part of a batch of references. In identicalmatter, being R.C.No.141 of 2000, which too at the instance ofAPSRTC, we dealt with those very questions and answered infavour of the applicant. Following the same, we answer the reference in favour of theapplicant-Corporation. There shall be no order as to costs. The miscellaneous petition filed in this appeal shall alsostand disposed of. ____________________ L.NARASIMHA REDDY, J. _____________________ CHALLA KODANDA RAM, J. Date:16.09.2014 GJ