TMI Blog2013 (4) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... leting the addition of ₹ 18,33 crores on account of surplus income. 2 It is prayed that the order of the ld. CIT(A) be set aside and that of the Assessing Officer restored. 3. After hearing both the parties we find that the assessee field a return declaring income of ₹ 57,14,022. The assessee is constituted for a period of three years and renewed from time to time by the State Government under the Water Prevention and Control of Pollution), Act, 1974 with the main object of performing the delegated power and function to provide for the prevention and control of water pollution and the maintaining or restoring of wholesomeness of water. 4. The Assessing Officer noticed during the assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the Tribunal before Hon'ble Himachal Pradesh High Court. Thereafter the Assessing Officer did not treat the assessee board as charitable institute and accordingly added the interest accrued for three years as well as excess income over expenses and assessed the income of the assessee at ₹ 20,66,71,688/-. 6 On appeal the ld. CIT allowed the relief on the basis of order of the Tribunal. 7 Before us, the Ld. DR for the revenue submitted that the assessee was charging fee for the services rendered and therefore, the assessee-board cannot be said to be existing for charitable purposes as defined in Section 2(15) which has specifically provided that any object of general public utility shall not be a charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia Corp Pvt Ltd V. Secretary, Board of Revenue (1964 SC 205 @ 215), Hon'ble Supreme Court has observed that, a special provision should be given effect to the extent of its scope, leaving general provisions to cover the cases where specific provisions do not apply . A special provision thus normally excludes the operation of general provisions, and the said principle will have application here as well. The assessee being covered by the specific clause set out above, and the residuary clause no longer being applicable, the proviso to Section 2(15) does not come into play at all. Therefore, it is wholly immaterial as to whether or not the assessee was rendering a service to the trade commerce or business. Given he present legal position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Act. Therefore, the Tribunal normally speaking can not adjudicate this issue. However, at the same time, it is to be noted that the revenue has no right to withhold the refund of the assessee simply because the revenue has not accepted the decision of the Tribunal. The revenue is required to give effect to the orders passed by the Tribunal and if same are reversed by the Hon'ble Himachal Pradesh High Court then appeal effect can be given again, therefore, the revenue should not hold back the refund because the same is not permissible under law. 14 Cross-objections of the assessee is partly allowed. 15 In the result, appeal of the revenue is dismissed and the Cross-objections of the assessee is partly all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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