Marimallappa's Charities v. The Dy. Commissioner of Income-tax, Circle-1(1), Mysore / The Commissioner of Income-tax, Mysore
[Citation -2020-LL-1111-47]

Citation 2020-LL-1111-47
Appellant Name Marimallappa's Charities
Respondent Name The Dy. Commissioner of Income-tax, Circle-1(1), Mysore / The Commissioner of Income-tax, Mysore
Court HIGH COURT OF KARNATAKA
Relevant Act Income-tax
Date of Order 11/11/2020
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags capitation fee


1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 11TH DAY OF NOVEMBER 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.644 OF 2016 BETWEEN: M/S. MARIMALLAPPA'S CHARITIES NARAYANASHASTRI ROAD MYSORE-570 001 REPRESENTED BY ITS HON. SECRETARY ...APPELLANT (BY SRI M. VEERABHADRAIAH, ADVOCATE) AND: 1. DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1) MYSORE VISHWESHWARANAGAR NO.55/1, SHILPASHREE BUILDING OPPOSITE TO STERLING TALKIES MYSORE-570 087. 2. COMMISSIONER OF INCOME TAX MYSORE VISHWESHWARANAGAR NO.55/1, SHILPASHREE BUILDING OPPOSITE TO STERLING TALKIES MYSORE-570 087. RESPONDENTS (BY SRI JEEVAN J. NEERALGI, ADVOCATE) 2 THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T.ACT, 1961, ARISING OUT OF ORDER DATED 24-06-2016 PASSED IN ITA NO.675/BANG/2014, FOR ASSESSMENT YEAR 2010-2011, PRAYING TO: I. FORMULATE SUBSTANTIAL QUESTIONS OF LAW AS STATED THEREIN. II. ALLOW APPEAL AND SET ASIDE ORDER PASSED BY ITAT, BENGALURU DATED 24-06-2016 PASSED IN ITA NO.675/BANG/2014 FOR YEAR 2010-2011, CONSEQUENTLY SET ASIDE ASSESSMENT ORDER DATED 29/01/2013 FOR YEAR 2010-2011 CONFIRMING ORDER DATED 12-08-2013 PASSED IN ITA NO.95/CIT(A)MYS/2012-13 RELATING TO ASSESSMENT YEAR 2010-2011. THIS I.T.A. COMING ON FOR HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT Mr.M.Veerabhadraiah, learned counsel for assessee. Mr.Jeevan J.Neerlagi, learned counsel for revenue. 2. This appeal under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as Act , for short) has been preferred by assessee. subject matter of appeal pertains to Assessment Year 3 2010-11. appeal was admitted by Bench of this Court vide order dated 25.10.2017 on following substantial questions of law: a) Whether Assessing Officer and appellate forums have jurisdiction to adjudicate genuineness of receipts by trust which is vested with Commissioner under Sections 12A and 12AA of IT Act especially when Sections 12(1) and 2(24)(iia) of IT Act deems all income received by assessee Trust to rigor of Sections 11, 12 and 13 of IT Act? b) Whether Tribunal is correct in law in reversing well reasoned order of Commissioner of Income Tax (Appeals) Mysore for Year 2010-2011 and holding that voluntary contributions received by appellant are in nature of capitation fees and therefore taxable in hands of appellant on facts and circumstances of case? 4 3. When matter was taken up today, learned counsel for assessee submitted that aforesaid substantial questions of law have already been answered against revenue by Bench of this Court in 'COMMISSIONER OF INCOME-TAX Vs. ADICHUNCHANGIRI MASAMSTANA MUTT' passed in ITA No.800/2009 and aforesaid decision was followed by another division bench of this Court in ITA No.52/2012 vide judgment dated 14.01.2019. aforesaid submission could not be disputed by learned counsel for revenue. 4. For reasons assigned in aforementioned judgments passed by two Division Benches of this Court, substantial questions of law framed in this appeal are answered in favour of assessee and against revenue. 5 5. In result, order of Income Tax Appellate Tribunal insofar as it pertains to Assessment Year 2010-11, is hereby quashed. Accordingly, appeal is allowed. Sd/- JUDGE Sd/- JUDGE RV Marimallappa's Charities v. Dy. Commissioner of Income-tax, Circle-1(1), Mysore / Commissioner of Income-tax, Mysore
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