COMMISSIONER OF INCOME-TAX AND THE DEPUTY COMMISSIONER OF INCOME-TAX Vs. M/S. CHILDREN'S EDUCATION SOCIETY

JUDGEMENT

(1.) As the assessee is common in all these appeals, though the appeals pertain to various assessment years wherein different questions of law arise for consideration, they are taken up for consideration together and disposed of by this common order. The assessee M/s. Children's Education Society is a society registered under the Karnataka Societies Registration Act, 1960. The society was formed on 29.9.1974 with the object of promoting, establishing and maintaining all types of educational institutions. The assessee society over the years has promoted several educational institutions from time to time. It was running as many as 23 educational institutions upto assessment years 1999-2000 and 2000-2001. Thereafter, as many as 25 and 28 educational institutions are being run during the previous years relevant to assessment years 2001-2002 and 2002-2003 respectively. The details of the institutions run by the assessee are as under:-

(2.) The assessee filed returns of income claiming status of 'artificial juridical person'. However, the assessee was assessed in the status of 'association of persons'. The assessing officer framed assessment order. However, he denied exemption under Section 10(23C)(iii)(ad) for the years from 2000-2001 to 2005-2006. He also disallowed subsidy for the assessment year 2001-2002. He disallowed building fund for the years 2001-2002 to 2006-2007. He also disallowed interest for the period from 2002-2003 to 2005-2006. Even expenditure on account of lease was disallowed for the assessment year 2003-2004. The donation was disallowed for the year 2003-2004 to 2005-2006. Aggrieved by the said disallowance, the assessee preferred appeals to the Commissioner of Income-Tax (Appeals). Infact, the Commissioner of Income-tax (Appeals) had granted relief to the assessee for the assessment year 1999-2000 First year in which Section 10(23C)(iii)(ad) came into force. Aggrieved by the said order, the revenue preferred appeal to the Tribunal which is ITA No. 1105/2002. That appeal alongwith appeal filed by the assessee against the aforesaid impugned order were clubbed together. The Tribunal dismissed the appeal filed by the revenue and allowed all the appeals filed by the assessee in-toto granting the relief to the assessee. Aggrieved by the said order of the Tribunal, the revenue is in appeal.

(3.) After going through the substantial questions of law raised and framed at the time of Admission, we are of the view, it requires to be recasted. The learned counsel appearing for the parties are also of the same view. Accordingly, the following substantial questions of law are framed: