THE COMMISSIONER OF INCOME TAX vs. M/S A S KUPPARAJU BROTHERS

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 14TH DAY OF AUGUST 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA No.1233/2006 C/W.ITA.1229/2006, 1230/2006, 1228/2006 & 1231/2006 ITA.NO.1233/2006 BETWEEN : 1. THE COMMISSIONER OF INCOME TAX EXEMPTIONS, C.R.BUILDING QUEENS ROAD BANGALORE

2 AGS COLONY, ANANDANAGAR, BANGALORE -560 024. ...RESPONDENT (BY SRI.A.SHANKAR & SRI.M.LAVA, ADVS) ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 18-03-2006 PASSED IN ITA.NO.1082/BANG/2003, FOR THE ASSESSMENT YEAR 1998-1999, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN ITA.NO.1082/BANG/2003 DATED 18-03-2006 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. DIRECTOR OF INCOME TAX, CIRCLE-17(1), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY. ITA No.1228/2006 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX EXEMPTIONS, C.R.BUILDING, QUEENS ROAD, BANGALORE.

3 ASKB CAMPUS, 1ST MAIN, AGS COLONY, ANANDANAGAR, BANGALORE-560 024. ...RESPONDENT (BY M/S A.S.KUPPARAJU BROTHERS) ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 18-03-2006 PASSED IN ITA.NO.1084/BANG/2003, FOR THE ASSESSMENT YEAR 2000-01, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA.NO.1084/BANG/2003 DATED 18-03-2006 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. DIRECTOR OF INCOME TAX, CIRCLE-17(1), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY. ITA.NO.1230/2006 BETWEEN : 1. THE COMMISSIONER OF INCOME TAX EXEMPTIONS, C.R.BUILDING

QUEENS ROAD BANGALORE 2. THE ASSISTANT DIRECTOR OF INCOME TAX EXEMPTIONS CIRCLE - 17(1) C.R.BUILDING, QUEENS ROAD, BANGALORE. ...APPELLANTS (BY SRI.M.THIRUMALESH, ADV)

4 AND: M/S A.S.KUPPARAJU BROTHERS CHARITABLE FOUNDATION TRUST ASKB CAMPUS, 1ST MAIN, AGS COLONY, ANANDANAGAR, BANGALORE-560 024. ...RESPONDENT (BY SRI. A.SHANKAR & SRI.M.LAVA, ADVS) ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 18-03-2006 PASSED IN ITA.NO.1081/BANG/2003, FOR THE ASSESSMENT YEAR 1997-1998, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA.NO.1081/BANG/2003 DATED 18-03-2006 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. DIRECTOR OF INCOME TAX, CIRCLE-17(1), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY. ITA No.1231/2006 BETWEEN : 1. THE COMMISSIONER OF INCOME TAX EXEMPTIONS, C.R.BUILDING

QUEENS ROAD BANGALORE 2. THE ASSISTANT DIRECTOR OF INCOME TAX EXEMPTIONS CIRCLE - 17(1) C.R.BUILDING, QUEENS ROAD, BANGALORE. ...APPELLANTS (BY SRI.M.THIRUMALESH, ADV)

5 AND: M/S A.S.KUPPARAJU BROTHERS CHARITABLE FOUNDATION TRUST ASKB CAMPUS, 1ST MAIN, AGS COLONY, ANANDANAGAR, BANGALORE-560 024. ...RESPONDENT (BY SRI. A.SHANKAR & SRI.M.LAVA, ADVS) ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 18-03-2006 PASSED IN ITA.NO.1083/BANG/2003, FOR THE ASSESSMENT YEAR 1999-2000, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA.NO.1083/BANG/2003 DATED 18-03-2006 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. DIRECTOR OF INCOME TAX, CIRCLE-17(1), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY. ITA.NO.1229/2006 BETWEEN : 1. THE COMMISSIONER OF INCOME TAX EXEMPTIONS, C.R.BUILDING

QUEENS ROAD BANGALORE 2. THE ASSISTANT DIRECTOR OF INCOME TAX EXEMPTIONS CIRCLE - 17(1) C.R.BUILDING, QUEENS ROAD, BANGALORE. ...APPELLANTS (BY SRI.M.THIRUMALESH, ADV)

6 AND: M/S A.S.KUPPARAJU BROTHERS CHARITABLE FOUNDATION TRUST ASKB CAMPUS, 1ST MAIN, AGS COLONY, ANANDANAGAR, BANGALORE-560 024. ...RESPONDENT (BY SRI. A.SHANKAR & SRI.M.LAVA, ADVS) ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 18-03-2006 PASSED IN ITA.NO.1085/BANG/2003, FOR THE ASSESSMENT YEAR 2001-02, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT, BANGALORE IN ITA.NO.1085/BANG/2003 DATED 18-03-2006 AND CONFIRM THE ORDER OF THE APPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE ASST. DIRECTOR OF INCOME TAX, CIRCLE-17(1), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY. THESE APPEALS ARE COMING ON FOR HEARING THIS DAY, K.SREEDHAR RAO J., DELIVERED THE FOLLOWING: J U D G M E N T The respondent-assessee is a Charitable Foundation Trust. The above appeals are pertaining to the assessment years 1997-1998, 1998-1999, 1999-2000 and 2001-2002. The Assessing Officer did not give the benefit of Sections 10(22) and 10(23C)(iiiad) of the of the Income Tax Act. The Commissioner of Income Tax (Appeals) confirmed the order passed by the Assessing Officer. However, the Income Tax Appellate Tribunal set aside the order of the CIT

7 (Appeals) and the Assessing Officer and remanded the matter back to the Assessing Officer. 2. The Revenue being aggrieved by the said order has come up in appeals. 3. Sri.Thirumalesh, learned counsel appearing for the Revenue submits that the Revenue has no grievance with regard to the order to the order of remand, but certain observations made by the Tribunal in its order would foreclose the discretion of the Assessing Officer in deciding the issues on merit. It is further submitted that the Hon'ble Supreme Court in a judgment reported in (1997) 224 ITR 310 in the case of ADITANAR EDUCATION INSITUTION v/s ADDITIONAL COMMISSIONER OF INCOME TAX has laid down the guidelines for assessments in respect of the Trust for each assessment year. Therefore, keeping in view the observations made by the Hon'ble Supreme Court in the above cited case, the present assessments in question can be decided in accordance with law and the remand order of the Appellate Authority may be upheld. Hence, the questions of law framed in these appeals need not be answered.

8 4. The appeals are accordingly disposed of in the terms indicated above without being influenced by the observation of the tribunal. Sd-/ JUDGE

Sd/- JUDGE mpk/-*