TaxTMI 
TaxTMI 
2019 (6) TMI 797
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....eals are assailing the assessment orders dated 29.12.2011, the order passed by the CIT (Appeals) dated 02.07.2013 and the order dated 31.05.2017 passed by the Income Tax Appellate Tribunal relating to the Assessment Years 2009-2010 and 2010-2011. Since the consideration ultimately was made by a common order in I.T.A. No.496 and 497/Kol/2013 and these two appeals arise out of the said common order, we have taken up these appeals together, heard and disposed of by this common order. The substantial question of law framed in these appeals is also common to both these appeals, which reads as hereunder : i) Whether on the facts and in the circumstances of the case, the appellant corporation is not entitled to the benefit of ex....
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....causes shall not be included - .... (26B) any income of a corporation established by a Central, State or Provincial Act or of any other body, institution or association (being a body, institution or association wholly financed by Government) where such corporation or other body or institution or association has been established or formed for promoting the interests of the members of the Scheduled Castes or the Scheduled Tribes or backward classes or of any two or all of them. Explanation.- For the purpose of this clause, - (a) "Scheduled Castes" and "Scheduled Tribes" shall have the meanings respectively assigned to them in clause (24) and (25) of article 366 of the Constitution; &nbs....
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....fication dated 27.08.1997, the reservation provided to Group 'C' and 'D' posts is to the extent of 80% and as such majority of the personnel would belong to Scheduled Tribe. In that light, it is contended that if the said aspect is kept in view, the benefit as claimed under Section 10(26B) would be admissible. Having contended so, the learned senior counsel would refer to observation as contained in the assessment order to indicate that the reason as assigned to decline benefit is that the main object for the incorporation of the Corporation does not indicate that it is for promoting the interest of Scheduled Castes or the Scheduled Tribes or backward classes. The denial for the said reason is not justified. It is also contended that the ob....
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....on, the same does not call for interference. Hence, he seeks to sustain the orders passed by the Assessing Officer, CIT (Appeals) and the Appellate Tribunal. In the above background, having taken note of the provision under which the exemption is claimed and also the substantial question of law as framed by this Court for consideration, at the outset, it would be appropriate to take note of the objects for which the appellate Corporation has been set up. The same reads as hereunder : "(A) Main objects to be pursued on the incorporation of the Company: 1. To formulate and execute Housing Schemes for the benefit & welfare of employees of the Police Department, Government of Arunachal Pradesh. 2. To ....
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....or all of them. In that circumstance, even if the contention as put forth on behalf of the appellant that the Appellate Tribunal has noticed that 98% of the population of Arunachal Pradesh comprises of Scheduled Tribes, that alone does not provide for any benefit to the appellant herein. Further the notifications dated 20.03.1995 and 27.8.1997 though provide for reservation in recruitment keeping in view Article 16 of the Constitution of India, that by itself cannot indicate that the Corporation has been set up for the benefit of the Scheduled Tribes. The learned senior counsel for the appellant in support of his contention has referred to the decision in the case of Commissioner of Income-Tax -Vs.- Harijan Evam Nirbal Varg Avas Nigam, (....
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....er Section 10(26B) though not having been established by specifically stating that it is for the benefit of the Scheduled Tribes. While making a consideration of that aspect, this Court had taken note of the fact that the Corporation had been set up to promote the development of the local population and on taking note that admittedly the tribal population constitutes the bulk of entire population, the benefit as claimed is held admissible. This is distinguishable from the facts of that case and as arising in the instant case. In the said case the Corporation had been set up for the entire population of the State and, in that light, the situation of the overwhelming tribal population was taken note as such population would be benefitted. How....