THE COMMISSIONER OF INCOME TAX vs M/S JAYANAGAR EDUCATION SOCIETY

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

ON THE 19TH DAY OF DECEMBER, 2018

BEFORE THE HON'BLE MR. JUSTICE RAVI MALIMATH

AND

THE HON'BLE MR. JUSTICE K. NATARAJAN

INCOME TAX APPEAL NO.22 OF 2006

BETWEEN:

THE COMMISSIONER OF INCOME TAX C.R. BUILDING, QUEENS ROAD, BENGALURU.

THE DIRECTOR OF INCOME TAX

(EXEMPTIONS),

QUEENS ROAD, BENGALURU. ... APPELLANTS

(BY SRI K.V. ARAVIND, ADVOCATE)

AND:

M/S. JAYANAGAR EDUCATION SOCIETY

NO.27/2, 33RD CROSS, II MAIN ROAD,

7TH BLOCK, JAYANAGAR,

BENGALURU.

... RESPONDENT

THIS INCOME TAX APPEAL IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU BENCH, IN

I.T.A. NO.1468/BANG/2002 DATED 28-4-2005 AND CONFIRM THE ORDER PASSED BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS), BENGALURU.

THIS INCOME TAX APPEAL COMING ON FOR ORDERS THIS DAY, RAVI MALIMATH, J., DELIVERED THE FOLLOWING:

J U D G M E N T

The assessee is an educational Society having various educational institutions. The Society was registered under Section 12A of the Income Act, 1961, (for short, ‘the Act’) originally on 31-10-2001 and later, on 5-2-2002. The application was rejected by the Director of Income Tax (Exemptions) by holding that there was no genuine Society in existence as of now

and the activities carried out in the name of the assessee are being carried out by Dr. Paramahamsa and his associates with a commercial motive to make profits. Therefore, there is no element of charity involved. Challenging the rejection of registration, an appeal was filed before the Tribunal. The Tribunal by the impugned order condoned the delay in filing the application for registration and set aside the order of the Director of Income Tax (Exemptions). Aggrieved by the same, the Revenue has filed this appeal.

Sri K.V. Aravind, the learned counsel for the appellants – Revenue, contends that the substantial questions of law that arises for consideration in this appeal are covered by the judgment of this Court in the case of THE DIRECTOR OF INCOME TAX (EXEMPTIONS) v. M/S. VENKATESHA EDUCATION SOCIETY (Income Tax Appeal No.182 of 2011) disposed off on 10-7- 2012.

In view of the aforesaid judgment, no substantial question of law arises for consideration in this appeal. Consequently, the appeal is dismissed.

SD/-

SD/- JUDGE

JUDGE

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THE COMMISSIONER OF INCOME TAX vs. M/S JAYANAGAR EDUCATION SOCIETY