9911796707
TMI Blog2025 (3) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order of the learned Commissioner of Income Tax (Appeals), Muzaffarnagar, dated 22.11.2016 for Assessment Year 2013-14 arising out of order u/s 143(3)/147 of the Income Tax Act, 1961 (hereinafter referred as 'the Act') dated 25.02.2015. 2. The grounds of appeal raised by the assessee are as under:- 1. That, the Ld. CIT(A) erred in holding that the appellant corporation was not set up by a central, state or provisional act for the welfare and economic upliftment of ex serviceman being the citizen of India as required u/s. 10(26BBB) of the Income Tax Act, 1961. 2. That, Ld. CIT(A) and Ld Assessing Officer erred in holding that the appellant was not established by the a central, state or provisional act, both the Ld. A.O. and the CIT(A) erred in justifying that: a. That Uttarakhand Purv Sainik Kalyan Nigam Limited was established by Government of Uttarakhand for welfare and economic upliftment of ex-serviceman and having duly satisfied the prescribed conditions of section 10(26BBB) of the Income Tax Act, 1961. b. The main objects of the Uttarakhand Purv Sainik Kalyan Nigam Limited were to provide employment, financial assistance, loans, subsidy/grants, to impart traini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. The main issue involved in this case is with regard to the deduction u/s 10(26BBB) of the I.T. Act 1961. 6. According to section 10(26BBB) of the I.T. Act, the following income is not to be included in total income: "Any income of a corporation established by a Central, State or Provincial Act for the welfare and economic upliftment of ex-servicemen being the citizens of India'. The following explanation follows the provision: 'For the purposes of this clause, "ex-servicemen means a persons who has served in any rank, whether as combatant or non-combatant in the armed forces of the union or armed force of the Indian states before the commencement of the constitution ( but excluding the Assam Rifles, Defence Security Corps, General Reserve Engineering Force, Lok Sahayak Sena, Jammu Kashmir Militia and Territorial Army) for a continuous period of not less than six months after attestation and has been released, otherwise than by way of dismissal or discharge on account of misconduct or inefficiency and in the case of a deceased or incapacitated ex-serviceman includes his wife, children, father, mother, minor brother, widowed daughter and widowed sist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment to other also. 11. From the above discussion, it is clear that the assessee does not fulfill the requirement of section 10(26BBB) in any manner. It is settled law that exemption from taxation is an exception to the general rule of taxation and a person claiming the same has to show that he satisfies all the conditions that are attached to the provision granting exemption. Further, the corporation should have been" established by a Central State or Provincial Act' 12. Assessee also relied upon the decision on the judgement of Hon'ble Allahabad High Court in the case of Commissioner of Income Tax vs. Harijan Evam Nirbal Varg Avas Nigam [1997] 226 ITR 696. The facts of the case relied upon by the assessee are quite distinguishable from the present case. In the case relied upon by the assessee, the issue involved was allowability of exemption u/s 10(26B) whereas in the present case the issue is with regard to allowability of exemption u/s 10(26BBB). Secondly, in the case relied upon by the assessee, it was held by the Hon'ble Allahabad High Court that income attributed to the housing schemes executed for promoting the members of the Scheduled Castes only would be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se for AYs 2011-12 and 2012-13 by stating that the facts for the present year was same as for AYs 2011-12 and 2012-13. 6. Against the above order, the assessee is in appeal before us. 7. During the course of hearing Ld. AR submitted that on identical issue for Asst. Year 2010-11 the Tribunal has dismissed assessee's appeal in ITA No. 2622/DEL/2015 against which the assessee has filed an appeal before the Hon'ble Uttrakhand High Court. He further submitted that Hon'ble Uttrakhand High Court has admitted the appeal by an order dated 19.10.2020 and framed substantial question of law in ITA No.15 of 2019. Further, the Ld. AR referred to Form No. 8, declaration filed under section 158A of the ITAT Act, 1961 and submitted that the appeal may be decided in view of the prayer made in the said application filed vide letter submitted on 03.01.2025 before the Tribunal. 8. The Ld. Sr. DR relied upon the order of the authorities below. 9. We have considered the rival submissions and perused the material available on record. As submitted by the ld. AR on the same facts, the Co-ordinate Bench of the Tribunal in assessee's own case had denied the claim of exemption u/s 10(26BBB) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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