DEPUTY COMMISSIONER OF INCOME TAX (E), CIRCLE-1, BANGALORE vs. M/S. KARNATAKA STATE MUSLIM FEDERATION, BANGALORE

This appeal is filed by the revenue against the order of the ld. Commissioner of Income-tax (Appeals)-14, LTU, [CIT(A)], Bengaluru, dated 31/05/2017.

The revenue raised the following grounds of appeal:

At the outset, it is noticed that the appeal is defective and the same is liable to be dismissed since the defects pointed out by the Registry remain unrectified. Moreover, we notice that the issue raised by the revenue is covered against the revenue by the decision of the Hon’ble Apex Court in the case of Commissioner of Income Tax vs. Rajasthan & Gujarati Charitable Foundation Poona (2018)(89 Taxman.com127)(SC) wherein it was held as under: “2. After hearing learned counsel for the parties, we are of the opinion that the aforesaid view taken by the Bombay High Court correctly states the principles of law and there is no need to interfere with the same. 3. It may be mentioned that most of the High Courts have taken the aforesaid view with only exception thereto by the High Court of Kerala which has taken a contrary view in 'Lissie Medical Institutions v. CIT [2012] 24 taxmann.com 9/209 Taxman 19 (Mag.)/348 ITR 344 (Ker.)'.

It may also be mentioned at this stage that the legislature, realising that there was no specific provision in this behalf in the Income Tax Act, has made amendment in Section 11(6) of the Act vide Finance Act No. 2/2014 which became effective from the Assessment Year 2015-2016. The Delhi High Court has taken the view and rightly so, that the said amendment is prospective in nature.”