The Commissioner Of Income Tax vs M/S Meerabo Global Foundation
2022 Latest Caselaw 2681 Kant

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     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

       DATED THIS THE 17TH DAY OF FEBRUARY 2022

                         PRESENT

         THE HON'BLE MR. JUSTICE ALOK ARADHE

                           AND

         THE HON'BLE MR. JUSTICE M.G.S. KAMAL

                  I.T.A. NO.128 OF 2022

BETWEEN:

1.    THE COMMISSIONER OF INCOME-TAX
      EXEMPTIONS, 6TH FLOOR
      UNITY BUILDING ANNEXE
      MISSION ROAD, BENGALURU-560027.

2.    THE INCOME-TAX OFFICER
      EXEMPTIONS, WARD -2
      PRESENT ADDRESS
      JCIT, EXEMPTIONS RANGE
      6TH FLOOR, UNITY BUILDING ANNEXE
      MISSION ROAD, BENGALURU-560027.

                                          .... APPELLANTS
(BY MR. K.V. ARAVIND, ADVOCATE)

AND:

M/S. MEERABO GLOBAL FOUNDATION
VIBGYOR HIGH 46/2
VITTASANDRA VILLAGE, BEGUR HOBLI
BANGALORE SOUTH TALUK
BENGALURU-560068
PAN AADTM2730J.
                                          ... RESPONDENT
                            ---
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     THIS I.T.A. IS FILED UNDER SEC. 260-A OF INCOME TAX
ACT 1961, ARISING OUT OF ORDER DATED 21.10.2021 PASSED
IN ITA NO.721/BANG/2020 FOR THE ASSESSMENT YEAR 2016-17,
PRAYING TO:
     (i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW
STATED HEREIN.
     (ii) ALLOW THE APPEAL AND SET ASIDE THE ORDER
PASSED BY THE ITAT, BANGALORE IN ITA NO.721/BANG/2020
DATED 21.10.2021 FOR ASSESSMENT YEAR 2016-17 ANNEXURE-C
CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER
AND CONFIRM THE ORDER PASSED BY THE JOINT COMMISSIONER
OF INCOME TAX, EXEMPTIONS RANGE, BENGALURU & ETC.


     THIS I.T.A. COMING ON FOR ADMISSION, THIS DAY,
ALOK ARADHE J., DELIVERED THE FOLLOWING:


                          JUDGMENT

Heard on the question of admission.

In the appeal memorandum filed, the following

substantial questions of law have been framed:

"1. Whether on the facts and in the circumstances of the case, the Tribunal order can be said as perverse in nature in allowing claim of assessee for carry forward of deficit ignoring the fact that there is no express provision in Act allowing such claim and this will result in granting double deduction, first as

accumulation of income under section 11(1)(a) or corpus donation under section 11(1)(d) in the earlier/current years or exempt income under section 10(34) and then as application of income under section 11(1)(a) in subsequent years which is not permissible under said provisions of the Act?

2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in allowing claim of assessee for carry forward of deficit ignoring that section 70 or section 71 do not apply to assessee-Trust as Section 11 is a self-code by itself and no other provisions of setting off are available to assessee?"

The aforesaid substantial questions of law have been

answered in favour of the assessee and against the revenue

vide judgment dated 20.01.2021 passed in ITA No.80/2016.

In view of the aforesaid and for the reasons assigned in

the judgment dated 20.01.2021 in ITA No.80/2016, the

substantial question of law is answered against the revenue.

In the result, we do not find any merit in this appeal,

the same fails and is hereby dismissed.

Sd/-

JUDGE

Sd/-

JUDGE

ss