CIT v. Karnataka Urban Infrastructure Development and Finance Corporation

284 ITR 582High Court2006#1563 most cited

What is CIT v. Karnataka Urban Infrastructure Development and Finance Corporation authority for?

Funds received by an entity acting as a nodal agency or agent of the government for implementing specific government schemes, or income generated from such funds (like lease premiums or interest), are not taxable in the hands of the agency if held on behalf of or remitted to the government.

73

judgments rely on this decision, according to BharatTax’s citation analysis of 366,459 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v KUIDFC · Karnataka Urban Infrastructure Development and Finance Corporation · 284 ITR 582 · 155 Taxmann.com 228 · nodal agency income tax · government agent funds taxability · representative assessee Section 160 · funds collected on government's behalf · non-taxable income government schemes · interest income nodal agency

Also reported as

155 Taxmann.com 228

Sections most often in play

Section 113Section 115Section 142(1)Section 143(3)Section 155Section 160Section 10(26B)Section 114

Issues it is cited on

section 3asection 160section 113section 114section 155section 16section 57section 22section 56liable to taxincome from other sourcessection 194

Judgments citing CIT v. Karnataka Urban Infrastructure Development and Finance Corporation

The ACIT, Trivandrum vs. The ACIT, Trivandrum

In the result, the appeal of the Revenue in I

ITA 484/COCH/2016[2003-04]Status: DisposedITAT Cochin01 Feb 2018AY 2003-04

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(2)Section 143(3)

…est received by the assessee on the amount of grant deposited in the bank was also in the nature of grant itself. (ii) The Hon’ble High Court of Karnataka in the case of CIT vs. Karnataka Urban Infrastructure Development and Finance Corporation reported in 284 ITR 582 held that the amounts received by the Centre for implementing certain schemes envisaged by the Government is not taxable in the hands of the assessee since the assessee is only an implementing agency. It was further held by the Hon’ble High Court that the interest from deposits made out of the grants received from the Government is also not taxab…

The ACIT, Trivandrum vs. M/S.Kerala Livestock Dev Board Ltd, Trivandrum

In the result, the appeal of the Revenue in I

ITA 474/COCH/2016[2012-13]Status: DisposedITAT Cochin01 Feb 2018AY 2012-13

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(2)Section 143(3)

…est received by the assessee on the amount of grant deposited in the bank was also in the nature of grant itself. (ii) The Hon’ble High Court of Karnataka in the case of CIT vs. Karnataka Urban Infrastructure Development and Finance Corporation reported in 284 ITR 582 held that the amounts received by the Centre for implementing certain schemes envisaged by the Government is not taxable in the hands of the assessee since the assessee is only an implementing agency. It was further held by the Hon’ble High Court that the interest from deposits made out of the grants received from the Government is also not taxab…

DCIT, Cir-2(1), Kolkata vs. M/S Kolkata Metro Rail Corporation Ltd., Kolkata

In the result, both the appeals filed by Revenue (ITA No

ITA 49/KOL/2016[2011-2012]Status: DisposedITAT Kolkata22 Dec 2017AY 2011-2012

Bench: Shri S.S. Viswanethra Ravi, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1362/Kol/2015& 49/Kol/2016 (िनधा"रणवष" / Assessment Year: 2010-11& 2011-12) I.T.O Wd-2(3), Kolkata Vs. M/S Kolkata Metro Rail Corpn. Ltd. Aayakar Bhawan, P-7, Chowringhee Square, 7Th Floor, Hrbc Bhavan, 4Th& 5Th R/No.21, Kol – 69. Floor, Munshi Prem Chand Sarani, Kolkata – 700 021. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aadck 5313 J (Appellant) .. (Assessee) Appellantby : Shriarindam Bhattacharjee, Addl. Cit Assesseeby :Shri Vikash Singhal. सुनवाईकीतारीख/ Date Of Hearing : 12/10/2017 घोषणाकीतारीख/Date Of Pronouncement : 22/12/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: These Captioned Two Appeals Filed By The Revenue,Pertaining To Assessment Year 2010-11,Aredirected Against The Order Passed By The Ld Commissioner Of Income Tax (Appeals)-1,Kolkata,Which In Turn Arise Out Of Assessment Orders Passed By The Assessing Officer U/S 143(3)Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2.Since These Two Appeals Relate To The Same Assessee, Different Assessment Years, Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.The Revenue’S Appeal In Ita No.1362/Kol/2015, A.Y 2010-11, Is Taken As The Lead Case. 4.The Grounds Of Appeal Raised By The Revenue (In Lead Case In Ita No.1362/Kol/2015, A.Y 2010-11) Are As Under:

For Appellant: ShriArindam Bhattacharjee, Addl. CIT
Section 143(1)Section 143(2)Section 143(3)Section 56

…e cost of its assets. These are receipts of capital nature and cannot be taxed as income. During the appellate proceedings, the assessee company cited the judgment in the case of CIT v. Karnataka Urban Infrastructure Development and Finance Corporation (2006) 284 ITR 582 (Kar), wherein it was held that interest on short term deposits with banks made out of funds received from M/s Kolkata Metro Rail Corpn. Ltd. ITA No.1362/Kol2015& 49/Kol/2016 Assessment Years: 2010-11&2011-12 Central and State Governments for development of infrastructure projects and the implementation of the megacity scheme, was not taxable as…

ITO, WD-2(3), Kolkata vs. M/S Kolkata Metro Rail Corporation Ltd., Kolkata

In the result, both the appeals filed by Revenue (ITA No

ITA 1362/KOL/2015[2010-2011]Status: DisposedITAT Kolkata22 Dec 2017AY 2010-2011

Bench: Shri S.S. Viswanethra Ravi, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.1362/Kol/2015& 49/Kol/2016 (िनधा"रणवष" / Assessment Year: 2010-11& 2011-12) I.T.O Wd-2(3), Kolkata Vs. M/S Kolkata Metro Rail Corpn. Ltd. Aayakar Bhawan, P-7, Chowringhee Square, 7Th Floor, Hrbc Bhavan, 4Th& 5Th R/No.21, Kol – 69. Floor, Munshi Prem Chand Sarani, Kolkata – 700 021. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aadck 5313 J (Appellant) .. (Assessee) Appellantby : Shriarindam Bhattacharjee, Addl. Cit Assesseeby :Shri Vikash Singhal. सुनवाईकीतारीख/ Date Of Hearing : 12/10/2017 घोषणाकीतारीख/Date Of Pronouncement : 22/12/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: These Captioned Two Appeals Filed By The Revenue,Pertaining To Assessment Year 2010-11,Aredirected Against The Order Passed By The Ld Commissioner Of Income Tax (Appeals)-1,Kolkata,Which In Turn Arise Out Of Assessment Orders Passed By The Assessing Officer U/S 143(3)Of The Income Tax Act, 1961 (Hereinafter Referred To As The ‘Act’). 2.Since These Two Appeals Relate To The Same Assessee, Different Assessment Years, Identical Issues Are Involved, Therefore, These Have Been Clubbed & Heard Together & A Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.The Revenue’S Appeal In Ita No.1362/Kol/2015, A.Y 2010-11, Is Taken As The Lead Case. 4.The Grounds Of Appeal Raised By The Revenue (In Lead Case In Ita No.1362/Kol/2015, A.Y 2010-11) Are As Under:

For Appellant: ShriArindam Bhattacharjee, Addl. CIT
Section 143(1)Section 143(2)Section 143(3)Section 56

…e cost of its assets. These are receipts of capital nature and cannot be taxed as income. During the appellate proceedings, the assessee company cited the judgment in the case of CIT v. Karnataka Urban Infrastructure Development and Finance Corporation (2006) 284 ITR 582 (Kar), wherein it was held that interest on short term deposits with banks made out of funds received from M/s Kolkata Metro Rail Corpn. Ltd. ITA No.1362/Kol2015& 49/Kol/2016 Assessment Years: 2010-11&2011-12 Central and State Governments for development of infrastructure projects and the implementation of the megacity scheme, was not taxable as…

ITO, Bangalore vs. M/S Bank Note Paper Mills India Pvt. Ltd., Bangalore

In the result, Revenue’s appeal for asst

ITA 1162/BANG/2016[2012-13]Status: DisposedITAT Bangalore10 Nov 2017AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Jason P Boazthe Income-Tax Officer, Ward-1(1)(3), Bengaluru. . Appellant Vs. M/S Bank Note Paper Mill India Pvt. Ltd., 1St Floor, S.R Complex, No.2, Thavarekere Main Road, S.G Palya, Drc Post, Bengaluru. . Respondent Pan – Aaecb3245M Appellant By : Shri B.R Sunil Kumar Singh, Cit Respondent By : Smt. Prathiba, Advocate Date Of Hearing : 7-11-2017 Date Of Pronouncement : -11-2017 O R D E R

For Appellant: Shri B.R Sunil Kumar Singh, CITFor Respondent: Smt. Prathiba, Advocate
Section 143(3)

…SC), Bokara Steel Ltd. (supra), and Tuticorin Alkali Chemicals & Fertilizers Ltd. (supra) and its own decision in the case of CIT v. Karnataka Power Corporation, (247 ITR 268) and CIT vs. Karnataka Urban Infrastructure and Development and Finance Corporation (284 ITR 582) held that such interest income would go to reduce the capital cost of the project, is on the capital account and should not be brought to tax. The relevant portion of the judgment is as under: “9. After hearing the rival contentions and perusing the material on record, we have noticed that the assessee-company is a Government owned company. In o…

ITO, Bangalore vs. M/S Bank Note Paper Mill India (P) Ltd., Bangalore

In the result, cross objections of the assessee are dismissed

ITA 692/BANG/2015[2011-12]Status: DisposedITAT Bangalore17 Mar 2017AY 2011-12

Bench: Smt. Asha Vijayaraghavan & Shri Inturi Rama Raoincome-Tax Officer, Ward 1(1)(3), Bengaluru. … Appellant Vs. Bank Note Paper Mill India Pvt. Ltd. I Floor, Sr Complex, No.2, Tavarakere Main Road, Sg Paly, Drc Post, Bengaluru-560029. … Respondent Pan:Aaecb 3245M & Cross Objn.No.177/Bang/2015 (In Ita No.692/Bang/2015) (Assessment Year: 2011-12) (By The Assessee) ***** Assessee By : Shri S.Parthasarathi, Advocate. Revenue By : Smt.Swapna Das, Jcit(Dr).

For Appellant: Shri S.Parthasarathi, AdvocateFor Respondent: Smt.Swapna Das, JCIT(DR)
Section 143(2)Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, BENGALURU BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER and SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER Income-tax Officer, Ward 1(1)(3), Bengaluru. … Appellant Vs. Bank Note Paper Mill India Pvt. Ltd. I floor, SR Complex, No.2, Tavarakere Main Road, SG Paly, DRC Post, Bengaluru-560029. … Respondent PAN:AAECB 3245M AND Cross Objn.No.177/Bang/2015 (In ITA No.692/Bang/2015) (Assessment year: 2011-12) (By the assessee) ***** Assessee by : Shri S.Parthasarathi, Advocate. Revenue by : Smt.Swapna Das, JCIT(DR). Date of hearing : 05/01/2017 Date of pronouncement : 17/0…

M/S. Karnataka vs. The Income-Tax Officer

ITA/423/2016HC Karnataka08 Feb 2017

Bench: JAYANT PATEL,A.N.VENUGOPALA GOWDA

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF FEBRUARY, 2017 PRESENT THE HON’BLE MR.JUSTICE JAYANT PATEL AND THE HON’BLE MR.JUSTICE A.N.VENUGOPALA GOWDA INCOME TAX APPEAL NO.423/2016 BETWEEN: M/s. KARNATAKA MUNICIPAL DATA SOCIETY MRC, 6TH FLOOR, 1-4 IT PARK RAJAJINAGAR INDUSTRIAL ESTATE BANGALORE- 560 010 REPRESENTED BY ITS SECRETARY Dr. VISHAL R., AGED ABOUT 39 YEARS S/O. SRI R. NARASIMHA. ... APPELLANT (BY Ms. JINITHA CHATTERJEE FOR SRI S.PARTHASARATHI, ADV.) AND: THE INCOME-TAX OFFICER WARD 2 (2)(2) BANGALORE - 560 003. ... RESPONDENT…

M/S Karnataka Municipal Data Society vs. The Income -Tax

ITA/306/2014HC Karnataka05 Oct 2016

Bench: ARAVIND KUMAR,JAYANT PATEL

Section 260A

…1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 05TH DAY OF OCTOBER, 2016 PRESENT THE HON’BLE MR.JUSTICE JAYANT PATEL AND THE HON’BLE MR.JUSTICE ARAVIND KUMAR ITA NOS.103-104/2016 & 387-388/2016 C/W ITA NO.306/2014 BETWEEN: M/S KARNATAKA MUNICIPAL DATA SOCIETY, MRC, 6TH FLOOR, 1-4 IT PARK, RAJAJINAGAR INDUSTRIAL ESTATE BANGALORE-560010 REPRESENTED BY ITS SECRETARY DR.N. MANJULA AGED ABOUT 40 YEARS D/O SRI. K.N. NARAYANAPPA NAIK ….APPELLANT (BY SRI.S PARTHASARATHI, ADVOCATE) AND: THE INCOME TAX OFFICER WARD-9(2), BANGALORE. …RESPONDENT (BY SRI.…

M/S Karnataka Municipal Data Society vs. The Income-Tax Officer

ITA/103/2016HC Karnataka05 Oct 2016

Bench: ARAVIND KUMAR,JAYANT PATEL

Section 260A

…1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 05TH DAY OF OCTOBER, 2016 PRESENT THE HON’BLE MR.JUSTICE JAYANT PATEL AND THE HON’BLE MR.JUSTICE ARAVIND KUMAR ITA NOS.103-104/2016 & 387-388/2016 C/W ITA NO.306/2014 BETWEEN: M/S KARNATAKA MUNICIPAL DATA SOCIETY, MRC, 6TH FLOOR, 1-4 IT PARK, RAJAJINAGAR INDUSTRIAL ESTATE BANGALORE-560010 REPRESENTED BY ITS SECRETARY DR.N. MANJULA AGED ABOUT 40 YEARS D/O SRI. K.N. NARAYANAPPA NAIK ….APPELLANT (BY SRI.S PARTHASARATHI, ADVOCATE) AND: THE INCOME TAX OFFICER WARD-9(2), BANGALORE. …RESPONDENT (BY SRI.…

Meerut Development Authority, New Delhi vs. Addl. CIT, Meerut

In the result, this ground of the assessee is allowed

ITA 5457/DEL/2010[2005-06]Status: DisposedITAT Delhi30 Sept 2016AY 2005-06

Bench: Shri J. Sudhakar Reddy & Ms Suchitra Kamble

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Shri S.K. Jain, Sr. DR
Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA Nos.5455 to 5457/Del/2010 Assessment Years : 2003-04 to 2005-06 Meerut Development Authority, Vs. Addl.CIT, CA Anupam Sharma, Range-1, 16, Hans Plaza, Meerut. Opp. Amarpali Cinema, Garh Road, New Delhi. PAN: AAALM0124D (Appellant) (Respondent) Assessee By : Shri Kapil Goel, Advocate Department By : Shri S.K. Jain, Sr. DR Date of Hearing : 24.08.2016 Date of Pronouncement : 29.09.2016 ORDER PER J. SUDHAKAR REDDY, AM: All these appeals are filed by the…

Meerut Development Authority, New Delhi vs. Addl. CIT, Meerut

In the result, this ground of the assessee is allowed

ITA 5455/DEL/2010[2003-04]Status: DisposedITAT Delhi30 Sept 2016AY 2003-04

Bench: Shri J. Sudhakar Reddy & Ms Suchitra Kamble

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Shri S.K. Jain, Sr. DR
Section 36(1)(iii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA Nos.5455 to 5457/Del/2010 Assessment Years : 2003-04 to 2005-06 Meerut Development Authority, Vs. Addl.CIT, CA Anupam Sharma, Range-1, 16, Hans Plaza, Meerut. Opp. Amarpali Cinema, Garh Road, New Delhi. PAN: AAALM0124D (Appellant) (Respondent) Assessee By : Shri Kapil Goel, Advocate Department By : Shri S.K. Jain, Sr. DR Date of Hearing : 24.08.2016 Date of Pronouncement : 29.09.2016 ORDER PER J. SUDHAKAR REDDY, AM: All these appeals are filed by the…

The Commissioner of Income Tax vs. The Bagalkot Town Development Authority

ITA/100027/2014HC Karnataka15 Dec 2015

Bench: S.ABDUL NAZEER,P.S.DINESH KUMAR

Section 11Section 11(1)(a)Section 11(2)Section 12Section 260ASection 263

…come for the assessment year 2008-09. The said order was challenged before the Income Tax Appellate Tribunal, Bengaluru. The Tribunal following the Judgment in the case of CIT v. Karnataka Urban Infrastructure Development & Finance Corporation reported in 284 ITR 582 (Kar) held that the interest earned by parking the funds received from the Government also assumed the 8 character of funds provided by the Government and cannot be brought to tax as Income from other sources. The Tribunal remanded the matter back to the assessing officer with a direction to re-do the assessment and while doing so to call upon…

Nehru Yuva Kendra Snagathan, New Delhi vs. DDIT (E), New Delhi

ITA 2287/DEL/2012[2006-07]Status: DisposedITAT Delhi23 Sept 2015AY 2006-07

Bench: Shri Inturi Rama Rao & Shri Kuldip Singh

For Appellant: Shri P. Dam Kanunjna, Sr. DRFor Respondent: Shri V. K. Aggarwal, AR
Section 10Section 11Section 12ASection 142(1)Section 143(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E ’, NEW DELHI) BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER I.T.A. No. 2287/Del/2012 Assessment year : 2009-10 Nehru Yuva Kendra Sangathan, Vs. DDIT (E), 2nd Floor, Core-IV, Scope Minar Inv. Circle II, Laxmi Nagar District Centre, New Delhi Vikas Minar, New Delhi-110 092 GIR / PAN:AAATN1697G (Appellant) (Respondent) Appellant by : Shri P. Dam Kanunjna, Sr. DR Respondent by : Shri V. K. Aggarwal, AR Date of hearing : 17.09.2015 Date of pronouncement : ORDER PER KULDIP SINGH, JM: The appellant by filling the present appe…