THE COMMISSIONER OF INCOME TAX vs. THE NAGARBAIL SALT-OWNERS

1 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 19TH DAY OF NOVEMBER 2016 PRESENT THE HON’BLE MR. JUSTICE ASHOK B.HINCHIGERI AND THE HON’BLE MR.JUSTICE P.S.DINESH KUMAR I.T.A.NO.100073/2015 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING ATTAVAR, MANGALURU 2. THE INCOME TAX OFFICER WARD-2, SANTERI KRUJAPA BUILDING HABBUWADA, KARWAR

... APPELANTS (BY SRI Y V RAVIRAJ, ADVOCATE) AND THE NAGARBAIL SALT-OWNERS CO-OPERATIVE SOCIETY LIMITED SANIKATTE, GOKARNA, KUMTA-581 326 ... RESPONDENT (BY SRI ASHOK KULKARNI & SRI.H.R.KAMBIYAVAR, ADVOCATES) THIS ITA IS FILED U/S.260A OF THE INCOME-TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTION OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE

2 INCOME TAX APPELLATE TRIBUNAL, PANAJI BENCH, PANAJI, IN ITA NO.256/PNJ/2014, DTD: 23.01.2015 FOR THE ASSESSMENT YEAR 2011-12 AND CONFIRM THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-2, SANTERI KRUJAPA BUILDING, HABBUWAD, KARWAR. THIS ITA HAVING BEEN HEARD AND RESERVED FOR JUDGMENT, THIS DAY, P.S.DINESH KUMAR. J., PRONOUNCED THE FOLLOWING:-: JUDGMENT This appeal was presented by the Revenue challenging the common order dated 23.1.2015, in I.T.A.Nos.252 to 256 & 377/PNJ/2014 so far as it relates to ITA 256/PNJ/2014 for the assessment year 2011-12. 2. The learned standing Counsel for the Revenue and the learned Counsel for the assessee were heard on the following substantial question of law: “Whether the respondent – Society assessed to tax on its income as ‘person’ as defined under Section 2(31) of Income Tax Act, 1961, is entitled to claim exemption over its profits paid to its members and claim it as

3 expenditure in the accounts before offering the profit for tax?” 3. By a detailed order of even date, this Court has dismissed I.T.A.No.100067/2015 for the assessment year 2006-07. Following the said judgment, this appeal is also dismissed without any order as to costs. Sd/- JUDGE Sd/- JUDGE Yn.