The Assistant Commissioner of Income TAx (Exemptions) Circle-1 , Mangalore V. M/s T A Pai Management Institute , Manipal

ITA 1367/BANG/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0229 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 27-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Question of law
• Section: 264

Judgement Text

ITA.1367/BANG/2018 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.1367/BANG/2018 (ASSESSMENT YEAR : 2015-16) ASST. COMMISSIONER OF INCOME-TAX (EXEMPTIONS), CIRCLE -1, MANGALURU .. APPELLANT V. M/S. T. A. PAI MANAGEMENT INSTITUTE, POST BOX NO.9, 80, BADAGABETTU, MANIPAL .. RESPONDENT PAN : AAATT2248R ASSESSEE BY : SHRI. M. SRIDHAR KAMATH, CA REVENUE BY : MS. NEERA MALHOTRA, CIT - DR HEARD ON : 27.03.2019 PRONOUNCED ON : 29.03.2019 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THE PRESENT APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT (A), MANGALURU, DT.12.02.2018, FOR THE A SSESSMENT YEAR 2015-16. 02. THE REVENUE HAS TAKEN UP THE FOLLOWING GROUNDS OF APPEAL BEFORE US : ITA.1367/BANG/2018 PAGE - 2 03. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE IS SUE IS SETTLED BY THE JUDGMENT OF THE HONBLE HIGH COURT OF KARNATAKA IN ITA NO.93 OF 2016, DT.30.08.2018, IN THE MATTER OF CIT V. M/S . ACADEMY OF GENERAL EDUCATION, WHEREIN AT PARA 4, IT WAS HELD A S UNDER : 4. WITH REGARD TO CARRYING FORWARD OF THE LOSSES FOR BEING SET OFF AGAINST THE INCOME OF THE CHARITA BLE TRUST FOR THE PRESENT ASSESSMENT YEAR, THE CONTROVERSY IS COV ERED BY THE JUDGMENT IN COMMISSIONER OF INCOME TAX (EXEMPTI ONS) AND ANOTHER VS. OHIO UNIVERSITY CHRIST COLLEGE RENDERED ON 17.07.2918 IN ITA.NO.31212016 AND ITA NO. 31312016, IN WHICH THE COURT HELD AS UNDER: XXXXXXX..... 18. IN VIEW OF THE AFORESAID FINDINGS OF THE LEARNE D TRIBUNAL, ALLOWING ANY EXPENDITURE OF THE EARLIER Y EAR WHICH HAS BEEN BROUGHT FORWARD AND SET OFF IN THE Y EAR ITA.1367/BANG/2018 PAGE - 3 UNDER CONSIDERATION, IS A JUSTIFIED FINDING OF FACT BASED ON THE CORRECT INTERPRETATION OF LAW AND THE JUDGMENT RELIED UPON BY IT RENDERED BY THE COGNATE BENCH. THEREFORE, THE SAME DOES NOT CALL FOR INTERFERENCE. A SIMILAR VIEW WAS ALSO TAKEN BY THE DIVISION BENCH O F BOMBAY HIGH COURT IN COMMISSIONER OF INCOME- TAX V. INSTITUTE OF BANKING (2003) 264 ITR 110, WHEREIN TH E DIVISION BENCH OF BOMBAY HIGH COURT HELD THAT THE INCOME DER IVED FROM THE TRUST PROPERTY HAS ALSO GOT TO BE COMPUTED ON COMMERCIAL PRINCIPLES AND IF COMMERCIAL PRINCIPLES ARE APPLIED, THEN ADJUSTMENT OF EXPENSES INCURRED B Y THE TRUST FOR CHARITABLE AND RELIGIOUS PURPOSES' IN THE EARLIER YEARS AGAINST THE INCOME EARNED BY THE TRUS T IN THE SUBSEQUENT YEAR WILL HAVE TO BE REGARDED AS APPLICATION OF INCOME OF THE TRUST FOR CHARITABLE A ND RELIGIOUS PURPOSES IN THE SUBSEQUENT YEAR. XXXX... IN VIEW OF THE CONTROVERSY COVERED BY THE ABOVE DECISIONS OF THIS COURT, WE ARE OF THE OPINION THAT THE SUBSTANTIAL QUESTION OF LAW AS SUGGESTED BY THE APP ELLANTS DOES NOT NOW ARISE FOR OUR FURTHER CONSIDERATION IN THE PRESENT APPEAL.' IT WAS SUBMITTED BY THE LD. AR THAT IN VIEW OF THE ABOVE, APPEAL OF THE REVENUE IS REQUIRED TO BE DISMISSED. 04. ON THE OTHER HAND THE LD. DR HAS NOT DISPUTED T HE LEGAL POSITION CANVASSED BEFORE US. HOWEVER, IT WAS SUBM ITTED THAT THE ISSUE IS SUBJECT TO CHALLENGE BEFORE THE HIGHER AUT HORITIES. 05. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE GROUNDS RAISED BY THE REVENUE IN TH E APPEAL IS SQUARELY COVERED AGAINST THE REVENUE. THEREFORE, F OLLOWING THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT, WE DISMISS THE APPEAL OF THE REVENUE. ITA.1367/BANG/2018 PAGE - 4 06. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH DAY OF MARCH, 2019. SD/- SD/- (A. K. GARODIA) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER BENGALURU DATED : 29.03.2019 MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.