COMMISSIONER OF INCOME-TAX JALANDHAR-I, JALANDHAR vs. M/S SAFFRON EDUCATIONAL TRUST ETC

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ITA/748/2010HC Punjab & HaryanaPHHC01093715201030 November 2011Bench: MR. JUSTICE HEMANT GUPTA,MR. JUSTICE GURMEET SINGH SANDHAWALIA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no question of law arises for consideration. The Tribunal had dismissed the Revenue's appeal by relying on a previous judgment of the same High Court in ITA No. 450 of 2008 titled Commissioner of Income Tax-I, Chandigarh vs. M/s. Manav Mangal Society, Sector 21, Chandigarh, decided on 19.8.2009. The Court noted that a Special Leave Petition against the Manav Mangal Society judgment was dismissed by the Hon'ble Supreme Court on 19.7.2010. Therefore, following its own precedent, which was upheld by the Supreme Court, the High Court found no substantial question of law to be decided in the present appeal. The appeal was dismissed.

What were the facts?

The Revenue (Commissioner of Income-Tax, Jalandhar-I) is in appeal under Section 260A of the Income Tax Act, 1961, against an order dated 30.04.2010 passed by the Income Tax Appellate Tribunal (ITAT), Amritsar Bench. The ITAT's order was in ITA No. 536(ASR)/2009 concerning the assessment year 2006-07. The appeal challenges the ITAT's decision to allow exemption under Section 11 of the Act to the assessee, M/s Saffron Educational Trust. The Revenue contended that the assessee society was not wholly charitable in nature and its income was not applied solely for charitable objects.

What were the issues?

1. Whether, on the facts and in the circumstances, the ITAT is right in law in allowing the exemption under Section 11 of the Income Tax Act, 1961, when the assessee society was not wholly charitable in nature because it was engaged in activities other than charitable, and since the income arising to it was not being applied solely for the attainment of the charitable objects of the trust? (Question of law) Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The assessee society was not wholly charitable as it engaged in non-charitable activities, and its income was not applied exclusively for charitable objects, thus disentitling it to exemption under Section 11. The Revenue relied on the ITAT's order being appealable under Section 260A.

Which sections of the Income-tax Act were involved?

Section 11,Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.A. No. 748 of 2010(O&M) Date of Decision: 30.11.2011 Commissioner of Income-Tax, Jalandhar-I, Jalandhar ........Appellant vs. M/s Saffron Educational Trust .......Respondent CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA HON'BLE MR. JUSTICE G.S. SANDHAWALIA Present: Mr. Vivek Sethi, Advocate for the appellant HEMANT GUPTA, J.

The revenue is in appeal under Section 260A of the Income Tax Act, 1961 (for short 'the Act') against an order passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar dated 30.04.2010 in ITA No. 536(ASR)/2009 for the assessment year 2006- 07, proposing to raise the following question of law:- “Whether on the facts and in the circumstances, the ITAT is right in law in allowing the exemption under section 11 of the Income Tax Act, 1961 when the assessee society was not wholly charitable in nature because it was engaged in the activities which were other than charitable and since the income arising to it was not being applied solely for attainment of the charitable objects of the trust.” Learned Tribunal has dismissed the appeal of revenue relied upon judgment of this Court in ITA No. 450 of 2008 titled

I.T.A. No. 748 of 2010(O&M) 2 Commissioner of Income Tax-I, Chandigarh vs. M/s. Manav Mangal Society, Sector 21, Chandigarh (decided on 19.8.2009). Learned counsel for the appellant-revenue admits that the issues raised in the present appeal are covered by judgment of this Court in ITA No. 450 of 2008 titled Commissioner of Income Tax-I, Chandigarh vs. M/s. Manav Mangal Society, Sector 21, Chandigarh (decided on 19.8.2009). It is also pointed out that special leave petition against said order stands dismissed on 19.7.2010 by Hon'ble Supreme Court.

In view of the judgment passed by this Court in Manav Mangal Society's case (supra), we do not find that any question of law arises for consideration by this Court. Dismissed. (HEMANT GUPTA) JUDGE

(G.S. SANDHAWALIA) 30.11.2011

JUDGE reena

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