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2019 (4) TMI 755 - ITAT MUMBAILiability to tax being as State under Article 289 of the Constitution of India and engaged in public utility services - immunity from the taxation - assessee board was set up by State Government by enacting law - CBDT notification dated 29.03.2016 exempting specified income u/s 10(46) - artificial juridical person as defined in section 2(31) - AO after re-opening of the assessment completed the assessment u/s 144 - AO took the view that assessee is a “Body Corporate” having perpetual successor and a common seal - HELD THAT:- The assessee is not rendering any services in the nature of trade, commerce or business for a fees or any other consideration, rather, the assessee engaged in regulation of educational activities as per the statutory obligation conferred on the assessee Board. Even otherwise as we have noted earlier every activities of the assessee Board is subject to superintendence, instruction and control of the State Government. In our view, the assessee Board is completely controlled financially as well as administratively by the Government, thus, falls under the definition of “State” as per Article 12 of the Constitution of India. The exemption in the CBDT notification dated 29.03.2016 is valid for Financial Year 2015-16 to 2018-19. Admittedly no return of income was filed by the assessee for the assessment year under consideration. The ld. AR initially argued that under bonafide mistaken belief that the assessee is being instrument of state is exempted from filing return of income, the assessee has not file return of income for the assessment year under consideration. Considering the facts that the assessee Board is under complete superintendence, and control of the State Government financially as well as administratively falls under the definition of “State” as per Article 12 of the Constitution of India. And in our view is entitled for immunity from the taxation of its income under the provisions of Income-tax Act. our view is further got the support that CBDT vide its notification date 29.03.2016 has granted exemption of taxation to the assessee board. - Decided in favour of assessee.
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