CIT and Others vs Garden City Education Trust

D.B. Bhosale, J.

These income-tax appeals are directed against the common order dt. 11-8-2006 rendered by Income-tax Appellate Tribunal, Bangalore Bench B (for short the Tribunal) in ITA Nos. 1298/Bang/2003 to 1301/Bang/2003, 2924/Bang/2004 to 2926/Bang/2004, 3126/Bang/2004 and 3127 of 2004 pertaining to the assessment year 1995-96 to 1997-98.

The appeals before the Tribunal were arising from three orders dt. 1st Aug., 2003, 29-7-2004 and 16-8-2004. The order dt. 1-8-2003 was passed by the Commissioner (Appeals) in ITA Nos. 1, 2, 3 and 7/Exemp/Commissioner (Appeals)-V/2003-04. The second order dt. 29-7-2004 was passed in ITA Nos. 4 to 6/Exemp/Commissioner (Appeals)-V/2003-04 and the order dt. 16-8-2004 was passed in ITA Nos. 38 and 39/Exemp/Commissioner (Appeals)-V/2003-04. The Tribunal by its order dt. 11-8-2006 confirmed the findings recorded by the Commissioner (Appeals) vide its orders dt. 1-8-2003, 29-7-2004 and 16-8-2004. The Commissioner (Appeals) vide its order dt. 1-8-2003 directed the assessing authority to grant the respondent/assessee the benefit of exemption under section 10(22) of the IT Act, 1961 (for short "the Act"). While the order dt. 29th July, 2004, the Commissioner (Appeals) allowed the appeal and granted exemption under section 10(23C)(vi) of the Act. Similarly vide order dt. 16-8-2004, the Commissioner (Appeals) granted exemption to the respondent/assessee under section 10(22) of the Act.

We have perused the common order dt. 11-8-2006 and we find that the Tribunal has not independently considered as to why the respondent/assessee is entitled for benefit/exemption either under section 10(22) or under section 10(23C)(vi) of the Act. In view thereof, learned counsel for the parties have fairly stated that all these appeals may be remanded to the Tribunal to consider them afresh and, in particular, whether and why the respondent/assessee is entitled to benefit/exemption under sections. 10(22) and 10(23C)(vi) of the Act. Hence, we pass the following :

Order

"The common order dt. 11-8-2006 passed by the Tribunal is set aside.

The ITA Nos. 1298/Bang/2003 to 1301/Bang/2003, 2924/Bang/2004 to 2926/Bang/2004, 3126/Bang/2004 and 3127/Bang/2004 are restored to file.

The Tribunal shall consider these appeals afresh and record its findings on the question whether the respondent/assessee is entitled for benefit/exemption under sections. 10(22) and 10(23C)(vi) of the Act.

All contentions of the parties are kept open.

It is needless to mention that the parties will be at liberty to file additional evidence/material, if they so desire, before the Tribunal in support of their case. It is made clear that we have not examined merit of the case.

With these observations, the appeals are disposed of. No costs.

IT Appeal No. 499 of 2007 :

This income-tax appeal is directed against the order dt. 12th Jan., 2007 passed against the very same respondent/assessee pertaining to the assessment year 1995-96 in ITA No. 2709/Bang/2004. The order passed by the Tribunal reads thus :

The Revenue has filed this appeal for the assessment year 1995-96 on the ground that the learned Commissioner (Appeals) was not justified in holding that the assessee trust is entitled for exemption under section 10(22) of the IT Act.

After hearing both the sides, we find that the issue is already covered by the decision of the Tribunal in assessees own case for the assessment year 1995-96 to 2001-02. A copy of the order passed by the Tribunal in ITA Nos. 1298 to 1301, 2924 to 2926, 3126 and 3127/Bang/2003 and 2004 dt. 11th Aug., 2006 has been placed before us. From the said order, we find that the present appeal is squarely covered by the aforesaid decision of the Tribunal in assessees own case, in favour of the assessee. In view of the circumstances above, the present appeal is dismissed.

In the result, the appeal is dismissed."

From perusal of the order passed by the Tribunal, it is clear that this order is passed in view of the order dt. 11-8-2006 for the assessment year 1995-96 to 1997-98. In view thereof and for the reasons recorded while disposing of IT Appeal No. 269 of 2007 read with IT Appeal Nos. 270 to 277 of 2007, this appeal is also allowed. The order dt. 12-1-2007 passed by the Tribunal is set aside and ITA No. 2709/Bang/2004 is restored to file.

The Tribunal shall consider and decide the appeal afresh in the light of the observation made in the order passed in IT Appeal Nos. 269 to 277 of 2007, on merit in accordance with law.

Appeal is accordingly disposed of. No costs.