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2015 (2) TMI 727 - ANDHRA PRADESH HIGH COURTEntitlement to benefit under section 11 - Tribunal held applicant not entitled to deduction u/s 11 on the ground that the applicant-corporation carried on the work of the applicant - whether salaried employees were not beneficiaries in the teeth of section 30 of the Road Transport Act, 1950 ? - Held that:- Tribunal was not right in law in holding that the salaried employees were not beneficiaries in the teeth of section 30 of the Road Transport Act, 1950 as relying on CIT, AP Versus Andhra Pradesh State Road Transport Corporation [1986 (3) TMI 1 - SUPREME Court] - Decided in favour of assessee. The beneficiaries of the corporation can be said to be the entire public. They use the facilities created by the corporation for travelling and other allied activities. If the provision is to be understood in such a way that the work in connection with the business must be carried out by the beneficiaries, it must result in a situation, where every passenger must have a say in the administration and business. It is not difficult to imagine chaotic condition that would emerge as a result of that. Obviously realising this, Parliament has chosen to employ the word "mainly". The ultimate test is to see as to whether the persons, who are in actual management of the institution, are the persons working for and on behalf of the beneficiaries or whether they have an independent and personal interest of their own. Viewed from that angle, the employees of the corporation ; in the ultimate analysis are none other than the public employees working for and on behalf of the beneficiaries. The role played by the Government is nothing but a systematic activity, through which the will of the public is transmitted or is translated. It hardly needs any mention that where two views are possible while interpreting a provision of taxation law, the one that helps the assessee or beneficiary must be chosen. In the instant case, the assessee is a corporation serving the needs of the travelling public in the State and was enjoying the benefit for the past several decades. Further, sub-section (4A) ceased to be in force on its being deleted in the year 1991. - Decided in favour of assessee.
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