2009 (12) TMI 410

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....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 declared its total income of Rs. 2,58,41,720. The r....

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....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 [1996] 219 ITR 203, has no application to the facts ....

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.... 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 various programmes of the State Government, which would f....

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.... "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 construction of a new market to organize self-help groups that ....