The Commissioner of Income-tax(Exemptions) V. WarangalWarangal Diocese Society

ITTA/268/2019

AI Insights

The case involves two appeals (I.T.T.A. Nos. 252 and 268 of 2019) filed by the Commissioner of Income Tax (Exemptions), Hyderabad against the Nalgonda Diocese Society concerning the exemption under Section 11 of the Income Tax Act, 1961 for the assessment year 2005-06. The appeals challenged the orders of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal, which had allowed the exemption. The main legal contention revolved around the interpretation of the Supreme Court's decision in State of Kerala vs. MP Shanti Varma Jain, which the appellant argued was misapplied by the lower authorities. However, the High Court found that the lower authorities had correctly interpreted the law and the Supreme Court's decision in the context of the case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 719768 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 16-11-2023
• Assessment Year: misc
• Other Referred Cases: State of Kerala vs. MP Shanti Varma Jain
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Respondent
• Court: HIGH COURT
• Department Lawyers: RAGHURAM
• Assessee Lawyers: A RADHA KRISHNA
• Keywords: Commissioner of Income Tax (Appeals); Exemption under section 11; Income tax appellate tribunal; Income Tax Tribunal Appeal
• Section: 11; 2604

Judgement Text

"[ 337e ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE SIXTEENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE Ii PRESENT I ITHE HON'BLE SRI JUSTICE P. SAM KOSHY AND I THE HoN'BLE sRI JUSTICE N.TUKARAMJI l.T.T.A.Nos: 252and 268 of 2019 l.T.T.A.No.252 ot 2019 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act, 1961 arising out of the order of the lncome-Tax Appellate Tribunal, Hyderabad Bench ' A ' Hyderabad,'in ITA No. 509/Hyd/2009, for assessment Year 2005-06 dated 03-0'l- 2012 preferred against the Order of the Commissioner of lncome Tax, (APPEALS)- lV, Hyderabad, Appeal No.0506/ADIT (E)-ll/ClT (A)-lV/2007-08, dated 30-01-2009 /l preferred against lthe Order of the Deputy Director of lncome Tax (E), Hyderabad ;l PAN/GIR No. pi/tuANl 189R, dated 28-12-2007. Between: The Commissioner of lncome Tax(Exemptions), Hyderabad ...Appellant AND Nalgonda Diocese Society, RP Road, Nalgonda. (PAN. AAAANTlsgR) ...Respondent Counsel for the Appellant: SRI A. RADHA KRISHNA (Sr SC For lT DEPT) Counsel for the Respondent: Mr. RAGHU RAM, Counsel appe'aring on behatf of MT. K. VASANTH KUMAR l.T.T.A.No.268 of 2019 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act, 196.1 arising out of the order of the lncome-Tax Appellate Tribunal. Hyclerabad Bench ,A , Hyderabad,! in lrA No. 298lHydl2oo9, for assessment year 2005-06 dated 03-01- 20'12 preferred against the order of the commissioner of lncome Tax, (AppEALS)- lV, Hyderabad, Appeal No.019O/DD|T (E)-il/CtT (A)-tV/2007-08, dated 2B-11-2OOB prefened against the order of the Deputy Director of lncome Tax (Exemptions)-ll, Hyderabad PAN/clR No. AAAAW0076D, dated 28-12-07. Between: The Commissioner of lncome Tax(Exemptions), Hyderabad. ANO il ll il gal Dioc'ese Society, FathimaNagar, Warangal nanawoozool )t' ...Appellant ...Respondent Waran (PAN. Counsel for the Appellant: SRI A. RADHA KRTSHNA (Sr SC For tT OEPT) Counsel for the Respondent: Mr. RAGHU RAM, Counsel appearing on behalfof MT. K. VASANTH KUMAR The Court delivered the following: COMMON JUDGMENT i I I t i I : I I l THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THB HON'BLE SRI JUSTICE N.TUKARAMJI I.T.T.A.Nos.252 and 268 of 2019 COMMON JUDGNIENT. (per Hon'ble Sri Justice P.SAM KOSHY) Heard Mr.A.Radha Krishan, learned Standing Counsel appearing for the appellant and Mr.Raghu Ram, learned counsel appearing on behalf of Mr.K.Vasanth Kumar, learned counsel for the respondent. Perused the material on record. 2. These are the two appeals arising out of the common decision rendered by the Income Tax Appellate Tribunal (for short ITAT), Hyderabad Bench 'A', Hyderabad, tn LT.A.No.298,&Iyd/2009 aod I.T.A.No.509/Hyd12009, decided on 03.01 .2012. The Assessment Year involved in these two appeals are 2005-06 ih respect of the same the assessee in two different districts i.e., Warangal and Nalgonda 3. I.T.T.A.No.252 of 2019 assails the order in I.T.A.No.509/Hyd/2009 and I.T.T.A.No.268 of 2019 assails the order in I. T. A.No. 2 9 8/Hy dl 2009 2 .. 4. The learned Tribunal white deciding the said tu'o appeals have rejected the appeal filed by the Revenue where the challt:nge was to the order passed by the CIT (A) dated 28.1 l '2008' wherein the Commissioner Appeats had quashed the order passcd b1 the Assigning Officer on 28.12.2007, refusing to grant benefit under Section I I of Income Tax Act (for short 'the Act'). The Comrnissioner Appeals held that the assessee would be allowed to have the exemption under Section I I of the Act. 5. Leamed counsel for the appeltant assailing the two orders i'e', the order passed by the commissioner Appeals and which ha,. been affirmed by the Tribunal referred to a decision of the Hon'ble Supreme Court in the case of State of Kerala vs. MP Shanti Varma Jainr' Learned counsel for the appellant contended that the TribunaI as also the Commissioner Appeals have wrongly interpreted the finclings given by the Hon'ble Supreme Court in the said case. 6. Upon due consideration of the order passed by the Commissioner Appeals, which stood affirmed by the Tribunal, we find that the Commissioner Appeals extensively dealt with the rnuch of the ' 231 ITR 787 3 I contentions that the Revenue has raised in these present appeals and have after elaborate discussion relied upon various decisions of the High Courts of the Country, deating with the said issue and have also discussed the judgment of the MP Shanti Varma Jain supra, relied upon l! t by the Revenue also. We are also of the considered opinion that the judgment of the Hon'ble Supreme Court in the case of MP Shanti Varma Jain, were under an entirely different context and statute where the issue was the exemption of payment of tax on the Agriculture income under Section 4 of the Kerala Agriculture lncome Tax Act, 1950, where the statute provided that the exemption would be available only in the event if the income of the trust would be applied for charitable purpose within the state. Such was not the case or issue in the present two appeals and we are of the considered opinion that the Tribunal as also the Commissioner Appeals have rightly considered the issue and decided in favour of the assessee 7. Accordingly, we do not find any strong case made out calling for an interference with the impugned orders nor do we find any substantial question of law made out in these two appeals. Thus, these two appeals fail and are accordingly rejected ,/ 4 8 As a sequel, miscellaneous applications pending if rLny, shall stand closed //TRUE COPY// SDI B.S.CHIRANJEEVI JOINT REGISTRAR SECTION OFFICER To, 1. The lncome-Tax Appellate Tribunal, Hyderabad Bench ' A Hyderabad 2. The Commissioner of lncome Tax, (APPEALS)-IV, Hyderabad. 3. The Deputy Director of lncome Tax (Exemptions)-ll, Hyderabad. a. The Deputf Director of lncome Tax (E), Hyderabad. 5. one CC to SRI A. RADHA KRISHNA (Sr SC For lT DEPT) [OPUC] 6. One CC to Mr. K. VASANTH KUMAR, Advocate [OPUC] 7. Two CD Copies Kam \" kr$ I I I I i I + HIGH COURT : I PSK, J & NTR, J i DATED:1611112023 COMMON JUDGMENT il lTTA.Nos.252 and 268 of 2O1g THESE TWO APPEALS ARE REJECTED j' -aa:: :...1E STATS: o l 1? 0i[ 2[?3 v o ,L '/ -) .a' --t . _':: /!:: r)n t '!., i "