2009 (12) TMI 410

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....UDGMENT The judgment of the court was delivered by K. L. Manjunath J.- The Revenue has come up in this appeal challenging the legality and correctness of the order dated February 5, 2004 in I. T. A. No. 716/Bang/2002, in respect of the assessment year 1998-99. 2. The assessee is a State-owned corporation enjoying the status of a company for the assessment year 1998-99. The assessee declar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Cheran Transport Corporation Ltd. [1996] 219 ITR 203. The Commissioner of Income-tax (Appeals) allowed the appeal of the assessee by relying upon the aforesaid decision. Challenging the same, the Revenue filed the appeal before the Income-tax Appellate Tribunal, Bangalore. 4. Before the Income-tax Appellate Tribunal, the Revenue contended that the judgment in Cheran Transport Corporation [199....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s filed. 5. The appeal is admitted to consider the following substantial questions of law : "(i) Whether the appellate authorities were correct in holding that the assessee which carries on the business of financing industrial undertakings in Karnataka is under a social obligation in lieu of the directions issued by the State Government to make contributions towards the development of variou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....otion. Since the Zilla Panchayath under a scheme known as "Swasthi Grama Yojana" was trying to develop model villages by providing facilities like developing roads to new markets, organizing self-help groups, community centres and development of infrastructural facilities. According to us, if the assessee has spent amount towards the development of infrastructural facilities of villages and constr....