9911796707
TMI Blog2009 (10) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to consider (i) the historical background (ii) the source of funding, the share-holding pattern and aspects, such as Return on Investment; (iii) the letters issued by C.B.D.T. and (iv) the judgments – matter remanded back to AO instead of HC - 2879 OF 2007 - - - Dated:- 20-10-2009 - S.H. KAPADIA and AFTAB ALAM JJ. CIVIL APPEAL NO.2879 OF 2007 With Civil Appeal Nos.2880-2887/2007 2895/2007, 2897- 2898/2007, 2901/2007, 2905/2007 and 2908/2007. Heard learned counsel on both sides. Appellant-Corporation [Assessee] was initially constituted as `Central Text Book Committee', which was attached to the office of the Director of Public Instruction. In 1950, the name was changed to `Assam Text Book Committee' with ten members no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lishing of text books for school students as per the norms prescribed and approved by the Education Department, State of Assam. In these appeals, we are concerned with Assessment Years 1981-1982 to 1996-1997, except Assessment Year 1989- 1990. The question which arose before the Assessing Officer was whether the Corporation could be termed as an `Educational Institution' in terms of Section 10(22) of the 1961 Act"? According to the Assessing Officer, since the assessee, during the relevant years, had income exclusively from publication and selling of text books to the students, exemption under Section 10(22) of the Income Tax Act, 1961 [for short, "the Act"], as it stood at the material time, was not admissible. According to the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment Company. Initially, as stated above, the assessee was a State-controlled Committee and Board, which were attached to the office of the Director of Public Instruction, State of Assam. It is only in the year 1972 that the Government Company got constituted under Section 617 of the Companies Act, 1956. That, prior to 1972, the entire funding for the working of the Committee/Board was done by the State of Assam and that even the ownership of the assets remained vested in the State of Assam which stood transferred to the Corporation in 1972 when it got incorporated under Companies Act, 1956. It is important to note that the assessee is a Government Company. It is controlled by the State of Assam. The aim of the said Corporation is to imple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her recites that, under a similar situation, the C.B.D.T. had also extended benefit of exemption under Section 10(22) of the Act to the Orissa Secondary Board Education, as reported in Secondary Board of Education vs. Income Tax Officer [86 I.T.R. 408]. Following these circulars/letters issued by C.B.D.T., the Rajasthan High Court came to the conclusion that the assessee in that case, namely, Rajasthan State Text Book Board, was entitled to claim the benefit of exemption under Section 10(22) of the Act. The operative part of the Rajasthan High Court's judgement reads as under: "It is not disputed before us that the aims and objects of the Tamil Nadu Text Book Society and those of the respondent-assessee are almost identical. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect that all State-controlled Educational Committee(s)/Board(s) have been constituted to implement the Educational policy of the State(s), consequently, they should be treated as Educational Institution. For the afore-stated reasons, we are of the view that, instead of remanding the matter to the High Court, it would be in the fitness of things that the matter stands remitted to the Assessing Officer to consider it de novo in the light of the judgements of the Rajasthan High Court and the Orissa High Courts, particularly, with reference to the letter of C.B.D.T. dated 19th August, 1975, referred to in the judgement of the Rajasthan High Court in the case of Rajasthan State Text Book Board (supra) as also the letter of Central Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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