COMMISSIONER OF INCOME TAX (EXEMPTION)KOLKATA vs. SARASWATI SEWA NYAAS

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ITA/128/2019HC CalcuttaWBCHCO000161201902 December 2021Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE HIRANMAY BHATTACHARYYA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, following the decision of the Hon'ble Supreme Court in Ananda Social and Educational Trust vs. Commissioner of Income Tax (2020) SCC OnLine SC 293, dismissed the appeal. The substantial question of law was answered against the revenue. The reasoning is that the Supreme Court's ruling on the application of Section 12AA and Section 80G(5)(vi) of the Income Tax Act, 1961, was binding. The ratio decidendi is that if a higher court has ruled on a specific legal issue, lower courts and tribunals must follow that precedent. Consequently, the Tribunal's order was upheld, and the appeal filed by the revenue was dismissed. Connected applications were also dismissed.

What were the facts?

The Commissioner of Income Tax (Exemption), Kolkata (the revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated May 16, 2018, passed by the Income Tax Appellate Tribunal (the Tribunal) in ITA Nos. 1595 and 1597/Kol/2017. The appeal pertains to the assessment year 2017-18 and concerns the assessee, Saraswati Sewa Nyaas. The High Court admitted the appeal on November 13, 2019, on a substantial question of law. The revenue's counsel acknowledged that the substantial question of law had been decided against the revenue in a Supreme Court decision.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the Tribunal has applied Section 12AA of the Income Tax Act read with Section 80G(5)(vi) of the Income Tax Act, 1961 correctly? Assessee's Contentions: Not recorded. Revenue's Contentions: The revenue's learned standing counsel submitted that the substantial question of law raised in the appeal had been decided against the revenue in the Supreme Court decision in Ananda Social and Educational Trust vs. Commissioner of Income Tax (2020) SCC OnLine SC 293. Therefore, the revenue implicitly conceded that the Tribunal's decision was correct based on this precedent.

Which sections of the Income-tax Act were involved?

Section 260A,Section 12AA,Section 80G(5)(vi)

AI-generated summary — verify with the full judgment below

OD – 4 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE IA No. GA/1/2019 (Old No. GA/202/2019 in ITA/128/2019 COMMISSIONER OF INCOME TAX (EXEMPTION), KOLKATA VS. SARASWATI SEWA NYAAS BEFORE : THE HON’BLE JUSTICE T.S. SIVAGNANAM A N D THE HON’BLE JUSTICE HIRANMAY BHATTACHARYYA Date: December 2, 2021. Appearance : Mr. Sudarshan Lamba, Adv. … for the appellant/revenue Mr. Ananda Sen, Adv. … for the respondent The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act, in brevity) is directed against the order dated 16th May, 2018 in ITA No. 1595 and 1597/Kol/2017 passed by the Income Tax Appellate Tribunal “A” Bench, Kolkata (the Tribunal) for the assessment year 2017-18. This appeal was admitted on 13th November, 2019 on the following substantial question of law :-

2 Whether on the facts and in the circumstances of the case, the tribunal has applied section 12AA of the Income Tax Act read with section 80G(5)(vi) of the Income Tax Act, 1961 correctly ? We have heard Mr. Sudarshan Lamba, learned standing counsel appearing for the appellant/revenue and Mr. Ananda Sen, learned counsel appearing for the respondent/assessee. Learned standing counsel appearing for the appellant/revenue submitted that the substantial questions of law raised in this appeal have been decided against the revenue in a decision of the Hon’ble Supreme Court in Ananda Social and Educational Trust vs. Commissioner of Income Tax (2020) SCC OnLine SC 293. Thus following the said decision, the appeal is dismissed and the substantial questions of law are answered against the revenue. Consequently, connected application, if there be any, stands dismissed. (T. S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) RS/GH

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