COMMISSIONER OF INCOME TAX Vs. IAS OFFICERS ASSOCIATION

JUDGEMENT

(1.) Revenue has come up in this appeal being aggrieved by the order passed by the Income Tax Appellate Tribunal, Bangalore in ITA No. 650/Bang/2001 dated 19.11.2004.

(2.) Assessee is a registered society under the provisions of the Karnataka Societies Registration Act, 1960. Members of the respondent-society are IAS Officers. An application filed under Section 12A of the Income Tax Act to grant exemption in respect of voluntary contribution received by it was rejected by the Commissioner of Income Tax. Assessee had not filed return of income, therefore notice under Section 148 of the Act was issued. Thereafter, return of income was filed by the respondent. Assessing officer passed an order of assessment on 22.12.1999. Being aggrieved by the order of assessment, respondent filed an appeal before the Commissioner of Income Tax (Appeals) contending that the exclusion of the expenditure claimed by the respondent-assessee in a sum of Rs. 53,826/- as illegal and erroneous. Appeal filed by the respondent came to be rejected against which respondent filed an appeal before the Income Tax Appellate Tribunal which appeal came to be allowed in part, therefore, present appeal is filed.

(3.) The appeal was admitted to consider the following substantial questions of law: