COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. RAJASTHAN HOUSING BOARD

Facts

The appeals were filed by the Commissioner of Income Tax (Exemptions) against an order of the Income Tax Appellate Tribunal (ITAT). The ITAT had concluded that the respondent-assessee, Rajasthan Housing Board, was entitled to the benefit of Section 2(15) read with Section 12A of the Income Tax Act, 1961. The Revenue contended that a Special Leave Petition (SLP) was pending before the Supreme Court concerning a similar issue, which had been tagged with another Civil Appeal. The High Court noted that the principal issue in these appeals was the subject of a previous decision by a Division Bench of the same court in Commissioner of Income Tax Vs. Rajasthan Housing Board (D.B.Income Tax Appeal No.193/2017 and connected cases decided on 27.11.2017). The assessment years involved were 2013-14, 2014-15, and 2015-16.

Held

The High Court held that the present appeals should be dismissed, following its own previous decision in Commissioner of Income Tax Vs. Rajasthan Housing Board (D.B.Income Tax Appeal No.193/2017 and connected cases decided on 27.11.2017). The Court clarified that the parties would be finally bound by the ultimate decision on the question of law to be rendered by the Supreme Court in the appeals pending before it. The reasoning for dismissal was based on the pendency of the SLP before the Supreme Court and the prior Division Bench judgment of the High Court. The operative direction was to dismiss the appeals with a clarification regarding the finality of the Supreme Court's decision. No issue was expressly left undecided.

Key Issues

1. Whether the respondent-assessee, Rajasthan Housing Board, is entitled to the benefit of Section 2(15) read with Section 12A of the Income Tax Act, 1961, for the assessment years 2013-14, 2014-15, and 2015-16? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the ITAT's conclusion, which is under challenge, implies the assessee argued for entitlement to the benefit of Section 2(15) read with Section 12A. Revenue's Contention: The Revenue pointed out that a Special Leave Petition (SLP No.34326/2018) was pending before the Supreme Court, tagged with Civil Appeal No.5923/2012, concerning the same principal issue. The Revenue relied on the pendency of this higher court matter.