THE COMMISSIONER OF INCOME TAX V. M/S TALSHILA EDUCATION SOCIETY

MA/531/2008

AI Insights

The case revolves around an appeal by the Income Tax Department against M/s Takshila Education Society concerning the eligibility for tax exemption under section 10(23C)(vi) of the Income Tax Act, 1961, for the assessment year 2001-2002. The department challenged the decision of the Commissioner of Income Tax (Appeals) and the Tribunal, which had both ruled in favor of the society, confirming its exemption status. The department's primary contention was that the society did not operate solely for educational purposes, a requirement for the exemption under the specified section. However, the Tribunal and the Commissioner of Income Tax (Appeals) had accepted the society's position, supported by an exemption order from the Central Board of Direct Taxes.

• Counselvise Citation: [2019] 140 COUNSELVISE.COM (IT) 684644 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 14-02-2019
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AJAY RASTOGI
• Assessee Lawyers: ARCHANA SINHA; ALOK KUMA R; SANJEEV KUMAR
• Keywords: Central Board of Direct Taxes; Educational Society; Exemption; Income Tax; Income tax appellate tribunal
• Section: 11; 12AA; 260A; 10(23C)(vi)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Miscellaneous Appeal No.531 of 2008 ====================================================== 1. The Commissioner of Income Tax Central, Patna. 2. Deputy Commissioner of Income Tax, Central Circle-4, Patna. ...Assessing Officer/Appellant/s Versus M/s Takshila Education Society Branch Office Kashi Place, Patna, B-549, New Friends Colony, New Delhi. ... Assessee/Respondent/s ====================================================== Appearance : For the Appellant/s : Smt. Archana Sinha, Adv. Mr. Alok Kumar, Adv. Mr. Sanjeev Kumar, Adv. For the Respondent/s : Mr. Ajay Kumar Rastogi, Adv. ====================================================== CORAM: HONOURABLE MR. JUSTICE JYOTI SARAN and HONOURABLE MR. JUSTICE ARVIND SRIVASTAVA ORAL JUDGMENT (Per: HONOURABLE MR. JUSTICE JYOTI SARAN) Date : 14-02-2019 Leave is granted to Ms. Archana Sinha, learned counsel appearing for the appellant-department to correct the provisions as occurring in paragraph (v) of the substantial questions of law to read section ‘10(23C)(vi)’ in place of ‘10(23)(vi)’ during course of the day. This appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) is directed against the order dated 18.03.2008 passed by the Income Tax Appellate Tribunal, Patna Bench, Patna (hereinafter referred to as ‘the Tribunal’) in ITA No.570/Pat/06 filed by the appellant- department for the assessment years 2001-02, whereby the appeal has been dismissed, thus confirming the order passed by Patna High Court MA No.531 of 2008 dt.14-02-2019 2/4 the Commissioner of Income Tax (Appeals), Patna dated 27.10.2006. We have heard Ms. Archana Sinha, learned counsel appearing for the Income Tax Department and Mr. Ajay Kumar Rastogi, learned counsel appearing for the respondent-assessee and we have perused the records. The assessee is an educational society and apparently enjoying the exemption granted by the statutory authority under section 10(23C)(vi) as well as the exemption under section 11 of ‘the Act’ for which it is duly registered under section 12AA of ‘the Act’. In so far as the present appeal is concerned, it is the exemption granted to the society under section 10(23C) (vi) of ‘the Act’ which is the subject matter of dispute and to cut short the matter it is because the Commissioner, Income Tax (Appeals) has accepted the position to differ with the opinion of the Assessing Authority and which opinion of the Commissioner, Income Tax (Appeals) has been endorsed by ‘the Tribunal’ by the order impugned that feeling aggrieved Department is before us. We have heard learned counsel for the parties and we have perused the records. Ms. Archana Sinha, learned counsel Patna High Court MA No.531 of 2008 dt.14-02-2019 3/4 appearing for the appellant-department has chosen to raise the issue present at paragraph (v) of the substantial question of law to submit that the assessee is not entitled to exemption under section 10(23C)(vi) of ‘the Act’, because it does not exist solely for educational purposes. The arguments are contested by Mr. Ajay Kumar Rastogi, learned counsel appearing for the respondent-assessee in reference to the order of the Central Board of Direct Taxes enclosed at Annexure R/1 series to submit that the appellants cannot be permitted to raise this issue in view of the exemption granted by the Central Board of Direct Taxes through the order dated 02.03.2002 which was valid for the period 1999-2000, 2000-2001 and 2001-2002 including the assessment year in question which is a subject matter of the present appeal i.e. assessment year 2001-2002. It is thus submitted that the order of ‘the Tribunal’ is in tune with the legal position settled under the exemption granted by the Central Board of Direct Taxes confirming the eligibility of the respondent-society to avail the exemption provided under section 10(23C)(vi) of ‘the Act’. We have heard learned counsel for the parties and we have perused the records and in our opinion apart from the fact that the issue raised by the department has not only been Patna High Court MA No.531 of 2008 dt.14-02-2019 4/4 negated by the Commissioner of Income Tax (Appeals) but has also been confirmed by the Tribunal as well, in view of the exemption granted by the Central Board of Direct Taxes on 02.03.2002 which remains uncontested, we do not see any reason for the department to prefer this appeal which issue stands answered by the exemption order of the Central Board of Direct Taxes dated 02.03.2002. For the discussions above, we find no merit in the substantial question of law so raised by the Department. The Appeal is dismissed accordingly. Anjula/Skpathak (Jyoti Saran, J) ( Arvind Srivastava, J) AFR/NAFR AFR CAV DATE NA Uploading Date 08.03.2019 Transmission Date NA "