COMMISSIONER OF INCOME-TAX JALANDHAR-I, JALANDHAR vs. M/S JYOTI PROVINCE SACRED HEART CONGREGATION

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ITA/780/2010HC Punjab & HaryanaPHHC01093750201030 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 arose for consideration. The Court dismissed the Revenue's appeal, relying on its own prior judgment in ITA No. 450 of 2008 titled Commissioner of Income Tax-I, Chandigarh vs. M/s. Manav Mangal Society, Sector 21, Chandigarh, decided on 19.08.2009. The Court noted that a Special Leave Petition against the Manav Mangal Society judgment had been dismissed by the Hon'ble Supreme Court on 19.07.2010. Therefore, following the precedent set in the Manav Mangal Society case, the High Court found no merit in the Revenue's appeal. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, Commissioner of Income-Tax, Jalandhar-I, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Amritsar Bench. The ITAT's order, dated 30.04.2010, pertained to the assessment year 2006-07 and concerned the assessee, M/s Jyoti Province Sacred Heart. The appeal challenged the ITAT's decision to allow exemption under Section 11 of the Act to the assessee society. The procedural history indicates that the ITAT had previously dismissed the Revenue's appeal.

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? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. Revenue's Contentions: The Revenue argued that the assessee society was not wholly charitable and that its income was not applied solely for charitable objects, thus disentitling it to exemption under Section 11. The Revenue relied on the proposed question of law as its argument.

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. 780 of 2010(O&M) Date of Decision: 30.11.2011 Commissioner of Income-Tax, Jalandhar-I, Jalandhar ........Appellant vs. M/s Jyoti Province Sacred Heart .......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. 534(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. 780 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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