2017 (7) TMI 1197 - HC - Income Tax

Entitlement to exemption under the provisions of Section 11 and 12 - Charitable purposes - Held that - As decided in COMMISSIONER OF INCOME-TAX VERSUS KRISHI UPAJ MANDI SAMITI, SHRIMADHOPUR 2010 (8) TMI 516 - RAJASTHAN HIGH COURT activities of the assessees - K.U.M.S. and the Rajasthan State Agriculture Marketing Board enshrined under the Rajasthan Agricultural Produce Markets Act, 1961, within the purview of charitable institutions can be registered as charitable institutions under section 12A of the Income-tax Act, 1961 and entitle to exemption under the provisions of sections 11 and 12 of the Income-tax Act, 1961

Summary

Issues Involved:
1. Appeal against order of Income Tax Appellate Tribunal for assessment years 2004-05 & 2005-06.
2. Dismissal of one appeal due to low tax effect as per circular no.21/2015.
3. Examination of batch of appeals by the Court on merits.
4. Question of law regarding validity of filing form no.-10 for exemption.
5. Agreement between parties to dispose of appeal based on previous judgment.

Analysis:
1. The appeal before the High Court was directed against the order of the Income Tax Appellate Tribunal for the assessment years 2004-05 & 2005-06. Two separate appeals were filed by the revenue for each assessment year.

2. One of the appeals, D.B. Income Tax Appeal No.389/2011 for the assessment year 2004-05, was dismissed by the Court due to low tax effect in accordance with circular no.21/2015 of the Central Board of Direct Taxes. This dismissal was based on the principle outlined in the circular.

3. The Court had previously examined a batch of similar appeals on merits and delivered a judgment on 18-8-2010 in D.B. Income Tax Appeal No.167/2010. In that judgment, it was held that certain institutions were considered "Charitable Institutions" under the Income Tax Act,1961, entitling them to exemptions under specific sections of the Act.

4. A substantial question of law was framed by the Court in the present appeal regarding the validity of filing form no.-10 for exemption under Rule-17 read with Section 11(2) of the Income Tax Act. The question raised was whether this filing was valid only within the time limit specified in Section 139(1) of the Act.

5. Both parties agreed that the substantial question of law framed in the present appeal was similar to the one decided in the previous judgment of 18-8-2010. Consequently, they jointly requested the Court to dispose of the present appeal in line with the judgment of D.B. Income Tax Appeal No.167/2010.

In conclusion, the High Court disposed of the present appeal in accordance with its previous judgment, emphasizing the consistency in the legal interpretation and application of tax laws in similar cases.