M/S.O.S.W.CO. V. COMNR.OF INCOME TAX

ITA/83/2004

AI Insights

The appellant challenged the common order of the Income Tax Appellate Tribunal, Cuttack, which dismissed their appeals concerning the exemption under Section 10(29) of the Income Tax Act, 1961, for the assessment years 1994-95, 1995-96, and 1996-97. The core issue was the denial of tax exemption on income derived from handling transportation charges and other investments. The Income Tax Department referenced a similar issue covered by a Supreme Court order, suggesting that the outcome of that case would determine the result of the current appeal. The court decided to dispose of the appeal based on the pending decision of the Supreme Court in the related case.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 767089 (HC-CUTTACK)
• Appeal Type: Others
• Pronouncement Date: 04-03-2019
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax vs. Gujarat State Warehousing Corporation Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Keywords: Exemption; Income Tax; Investment income; Transportation charges
• Section: 10(29)

Judgement Text

" 06. 03.04.2019 Heard. 2. By way of this appeal, the appellant has challenged the common order dated 08.03.2004 passed by learned Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (hereinafter referred to as “the Tribunal”) in ITA 283/CTK/2001, ITA 212/CTK/2001 & ITA 213/CTK/2001, whereby the Tribunal has dismissed the aforesaid appeals filed against the orders of the CIT(A) for the assessment year 1994-95, 1995-96 & 1996-97. 3. It appears that the grievance of the appellant before the Tribunal was relating to the action of the authority for not giving exemption under Section 10(29) of the Income Tax Act, 1961 in respect of income derived from handling transportation charges and other income including income from investment. 4. Mr. T.K. Satapathy, learned Senior Standing Counsel for the Income Tax Department states that the issue involved in this appeal is squarely covered by the order dated 20.03.2019 passed by this Court in S.J.C.No.135 of 1997. The order dated 20.03.2019 reads as under: “ Heard learned counsel for the petitioner and learned Senior Standing Counsel for the Income Tax Department. 2. By way of this application, the petitioner has prayed for issuance of a direction to learned Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (hereinafter referred to as “the Tribunal”) to refer the questions of law as stated in the reference application vide Annexure-5 to the writ petition, to this Court for opinion. 3. The question of law sought to be referred reads as under: “Whether on the facts and in the circumstances of the case, the Assessee is entitled to exemption from tax on its interest and other income under Section 10(29) of the Income Tax Act, 1961?” I.T.A. No.83 of 2004 -2- 4. Learned counsel for the petitioner states that the issue in question is referred to the Larger Bench of Supreme Court of India pursuant to the order dated 23.02.2000, passed in Civil Appeal No.6650 of 1995 (Commissioner of Income Tax vs. Gujarat State Warehousing Corporation Ltd.), reported in (2000) 245 ITR 1 (SC), and the same pending for consideration. 5. Considering such submissions made, we are making it clear that the parties will be governed by the decision of the Supreme Court in the above mentioned case. It is made clear that if the issue in question is decided by the Supreme Court, in the above mentioned case, in favour of the Assessee, the Assessee will appear before the Tribunal within three months from the date of decision of the Supreme Court and if the decision will be in favour of the opposite party, the Department is directed to take follow up action, as per law. With the above observation, this S.J.C. stands disposed of. Issue urgent certified copy as per Rules.” 5. Accordingly, this appeal is disposed of in terms of above quoted order 20.03.2019 passed by this Court in S.J.C.No.135 of 1997. Urgent certified copy of this order be granted on proper application. SKG/SKJ .……..........………… ( K.S. Jhaveri ) Chief Justice ……………….…….. ( K.R. Mohapatra ) Judge "