INFOPARKS Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) WHETHER the refusal on the part of the respondents/Departmental authorities to issue exemption certificate under Section 197 of the IT Act ('Act' in short) to the petitioners, in view of the amendment brought about by incorporating a 'proviso' to Section 2(15) of the Act w.e.f. 1st April, 2009 is justified; forms the common issue involved in both these cases.

(2.) THE petitioners are State Government owned societies registered under the Travancore Cochin Literary, Scientific and Charitable Societies Registration Act (Act XII of 1955), allegedly with the main object of setting up of Information Technology Parks in Kerala, among other goals. Pursuant to the said objective, the petitioners acquired lands and constructed buildings which have been let out to various information technology companies for rent. Petitioners' institutions were got registered as a charitable trust under Section 12A of the Act and exemption was obtained under Section 11 of the IT Act in respect of the income derived by them on letting out the premises.

(3.) SECTION 11 of the Act stipulates that the income from property held for charitable or religious purpose shall not be included in the total income of the previous year of the person in receipt of the income to be given effect in the manner as specified therein. The term 'charitable purpose' has not been defined under the statute; but for the inclusive nature of the term as specified under Section 2(15) of the Act, which as existed before the amendment is as follows : Section 2(15) : 'Charitable purpose' includes relief of the poor, education, medical relief and the advancement of any other object of general public utility. As per Section 2 of the Finance Act, 2008, the said provision was amended adding a 'proviso' w.e.f. 1st April, 2009 as follows :