TMI Blog2013 (12) TMI 722X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant : Sri. G Kamaladhar, Adv. for Sri. K V Aravind, Adv For the Respondent : Sri. S Parthasarathi, Adv JUDGEMENT:- PER : N Kumar, J As in these two appeals a common question of law is involved, they are taken up for consideration together and disposed of by this common order. 2. The assessee in both the appeals is one and the same. These two appeals pertain to the assessment years 2000-01 and 2001-02. The assessee is KSRTC Employees Death-cum-Retirement Benefit Fund. The assessee filed the return of income for the assessment year 2000-01 on 18.09.2000 declaring total income as Nil by claiming exemption under Section 11 and 12/10(23AAA). Similarly, the returns of the year 2001- 02 was also filed on 16.08.2001 clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employees of Karnataka State Road Transport Corporation as its member. The return of Income is filed in the status of AOP. The object of the Association is to render monetary assistance to the members of the Trust/Fund on the eve of retirement due to superannuation, retirement, termination of service on medical grounds and to render help to the nominee or nominees of the deceased member. As the deposits of that amount was not made as specified under Section 11(5) of the Act, the assessee is not entitled to the benefit under the said provision also and therefore, he proceeded to pass an assessment order denying the exemption. 3. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Appeals. The Appellate Aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By virtue of the same, the assessee is claiming exemption under Section 11 as well as under Section 10(23AAA) of the Act. The assessee has obtained the necessary approval under Section 10(23AAA) of the Act. Section 10 in Chapter III deals with Incomes which do not form part of total income. Section 10(23AAA) of the Act reads as under 10(23AAA) Any income received by any person on behalf of a fund established, for such purposes as may be notified by the Board in the Official Gazette, for the welfare of employees or their dependants and of which fund such employees are members if such fund fulfils the following conditions, namely : - (a) the fund - (i) applies its income or accumulates it for application, wholly and exclusively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. Therefore in view of Section 10(23AAA) of the Act, the assessee would not be entitled to the benefit of the said provision insofar as the income received by any person on behalf of the fund established. That is what precisely, the Appellate Authorities have held. But once the fund is approved by the Commissioner in accordance with the Rules made in this behalf, the contribution made by the employees to the said fund do not form part of the total income and consequently, it does not attract tax under the Act. Therefore, both the Appellate Authorities were justified in holding that Rs.1,40,00,000/- which represents that contribution is not liable for tax. In that view of the matter, the order passed by the Appellate Authorities cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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