THE COMMISSIONER OF INCOME TAX vs. ISLAMIC ACADEMY OF EDUCATION

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ITA/711/2009HC KarnatakaKAHC01075052200921 August 2015Bench: B.MANOHAR,VINEET SARAN4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court decided the first question of law in favor of the assessee, following a previous judgment. The second question was not to be answered as it did not arise from the facts.

What were the facts?

The revenue appealed against the ITAT's order concerning the assessee's status as a trust and the treatment of certain donations. The High Court was presented with two questions of law.

What were the issues?

Whether the assessee should be treated as a trust or an AOP, and the taxability of certain amounts treated as unaccounted donations and corpus donations.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 11(5),Section 13(d)(i),Section 13(2)(h),Section 11,Section 43B

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 21ST DAY OF AUGUST, 2015

PRESENT

THE HON'BLE MR. JUSTICE VINEET SARAN

AND

THE HON’BLE MR. JUSTICE B.MANOHAR

ITA NO. 711 / 2009

BETWEEN

1 THE COMMISSIONER OF INCOME TAX

C R BUILDING, ATTAVARA

MANGALORE

2 THE ASST. COMMR. OF INCOME TAX

CENTRAL CIRCLE, C R BUILDING

ATTAVARA, MANGALORE ... APPELLANTS

(BY SRI K V ARAVIND & E I SANMATHI, ADV.)

AND

ISLAMIC ACADEMY OF EDUCATION ® NITHYANANDA NAGAR, DERALAKATTE MANGALORE

...RESPONDENT

(BY SRI S.PARTHASARATHI, SMT. JINITA CHATTERJI & SRI V.K.GURUNATHAN, ADVs.)

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED: 12.6.2009 IN ITA

1395/BANG/2008 FOR THE ASST. YEAR 2002-03 PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE – I, BANGALORE.

THIS ITA COMING ON FOR HEARING THIS DAY, VINEET SARAN J. DELIVERED THE FOLLOWING:

JUDGMENT

Heard Sri K.V.Aravind, learned counsel for the appellants and Sri S.Parthasarthi, learned counsel for the respondent and perused the record.

2.

This appeal has been ADMITTED on the following questions of law:

“1. Whether the Appellate Authorities were correct in holding that the assessee was to be treated in the status of Trust as the assessee had been granted registration u/s.12AA of the Act without appreciating that the assessee has contravened the provisions of Section 11(5) r.w.s.s. 13(d)(i) and 13(2)(h) of the Act and

therefore not exempted u/s.11 of the Act and should be treated as AOP and permitting carry forward of depreciation loss as held by the Assessing Officer?

2.

Whether the Appellate Authorities were correct in holding that a sum of Rs.1,95,64,581/- treated as the income of the assessee as unaccounted donations (Rs.60,00,000/-), corpus donations (Rs.1,35,00,000/-) charity and donations (Rs.60,000/-) disallowance (Rs.4,581/-) u/s.43B of the Act, after allowing depreciation and expenditure after deducting admitted income worked out the depreciation loss to be carried forward of Rs.1,63,46,340/- by the Assessing Officer was liable to be set aside?”

3.

Learned counsel for the parties have jointly submitted that the first question involved in this appeal is covered by the decision of this Court in the case of Commissioner of Income Tax –vs- M/s.Islamic Academy of Education in ITA No.805/2008 decided on 09.09.2014.

4.

For the reasons given in the aforesaid judgment, the first question of law is decided in favour of the assessee and against the revenue.

5.

Sri K.V.Aravind, learned counsel for the appellant has very fairly stated that in the facts of the case, the second question of law, as has been framed, would not arise from the order of the Tribunal and as such the same need not be answered.

The appeal stands dismissed. No order as to costs.

Sd/-

JUDGE

Sd/-

JUDGE

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