CIT, KARNAL vs. MARKET COMMITTEE, ASSANDH

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ITA/943/2008HC Punjab & HaryanaPHHC01080986200806 February 2009Author: MR. JUSTICE NAWAB SINGH,MR.JUSTICE J.S. KHEHAR2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court accepted the prayer made by the learned counsel for the appellant (revenue). The court dismissed the instant appeal in terms of the order passed by this Court in ITA No.654 of 2005. The specific finding on the substantial question of law regarding the Market Committee being a charitable trust/institution under Section 2(15) was not adjudicated upon on merits. Instead, the appeal was disposed of based on a previous decision in a similar case and the revenue's request to leave the question undecided. The operative direction was the dismissal of the appeal.

What were the facts?

The appeal was filed by the Commissioner of Income-tax, Karnal against an order of the Income-tax Appellate Tribunal (ITAT). The assessee is Market Committee, Assandh, Distt. Karnal. The assessment year(s) are not specified. The core issue revolves around whether the Market Committee qualifies as a charitable trust/institution under Section 2(15) of the Income-tax Act, 1961. The revenue's counsel acknowledged that the controversy had been adjudicated by the High Court in a similar case, Commissioner of Income Tax-II, Amritsar Versus Market Committee, Dhariwal (ITA No.654 of 2005 decided on 14.3.2007). The revenue requested that the substantial question of law be left undecided.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in holding that the Market Committee is a Charitable Trust/Institution within the meaning of section 2(15) of the Income-tax Act, particularly when the legislature has clarified the charitable activities by inserting proviso to section 2(15) of the Act by the Finance Act, 2008? Assessee's contentions: Not recorded. Revenue's contentions: The revenue's counsel stated that the controversy involved in the instant appeal has been adjudicated upon by the High Court in Commissioner of Income Tax-II, Amritsar Versus Market Committee, Dhariwal (ITA No.654 of 2005 decided on 14.3.2007). The revenue expressly invited the court to leave the aforesaid substantial question of law undecided for being raised in an appropriate case.

Which sections of the Income-tax Act were involved?

Section 2(15)

AI-generated summary — verify with the full judgment below

ITA No.943 of 2008 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH.

Date of Decision:-6.2.2009 The Commissioner of Income-tax, Karnal ---Appellant Versus Market Committee, Assandh, Distt.Karnal ---Respondent CORAM:- HON'BLE MR.JUSTICE J.S.KHEHAR HON'BLE MR.JUSTICE NAWAB SINGH Present:- Mr.Yogesh Putney, Advocate for the appellant. J.S.KHEHAR, J.(ORAL) Learned counsel for the appellant very fairly states that the controversy involved in the instant appeal has been adjudicated upon by this Court in Commissioner of Income Tax-II, Amritsar Versus Market Committee, Dhariwal (ITA No.654 of 2005 decided on 14.3.2007). Learned counsel for the appellant has, however, expressly invited our attention to the following substantial question framed by the appellant in the grounds of appeal:- “Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in holding that the Market Committee is a Charitable Trust/Institution within the meaning of section 2(15) of the Income-tax Act, particularly when the legislature has clarified the charitable activities by inserting proviso to section 2(15) of the Act by the Finance Act, 2008?” It is the submission of the learned counsel for the appellant that the

ITA No.943 of 2008 2 aforesaid question may be left undecided for being raised in an appropriate case. Prayer made by the learned counsel for the appellant is accepted. The instant appeal is dismissed in terms of the order passed by this Court in ITA No.654 of 2005.

(J.S.Khehar) Judge (Nawab Singh) 6.2.2009 Judge AS

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