2023 (4) TMI 891

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....e Government of Maharashtra / Extended arm of State Government of Maharashtra as per Article 12 of Constitution of India and consequently, the income of Appellant is not under ambit of taxation as per Article 289 of Constitution of India .. 2. The learned ClT(A)-NFAC, Delhi erred in law and on facts in upholding order of learned AO of assessing the taxable income of the appellant to the tune of Rs. 14,78,04,093/-by denying exemption u/s 10(26BBB) of ITA, 1961. 3. Learned CIT(A) erred in law & on facts denying exemption u/s 10(26BBB) of ITA, 1961 by holding that, the appellant is not formed under Central, State or Provisions Act &, but formed under Maharashtra State Government Resolution (GR) thereby, not eligible to claim exemption u/s ....

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.... have been filed. There is no evidence also on record to suggest that hearing notice was not served properly on the given address of the assessee. The submissions of the ld. D.R and the documents/materials on record are considered and the matter is decided on merits. 3. That, on perusal of grounds of appeal, the first and foremost grievance of the assessee is denial of exemption u/s 10(26BBB) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") by the NFAC holding that the assessee is not formed under Central, State or Provincial Act but formed under a resolution passed by the Government of Maharashtra and thereby not eligible for exemption u/s 10(26BBB) of the Act. That, without prejudice to the grounds raised on this issue,....

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.... the said provision i.e. sec. 10(26BBB) of the Act that any income of corporation which is established either by Central, State or Provincial Act only is exempted u/s 10(26BBB) of the Act. In this case, the assessee-corporation has come into existence by a Resolution of Government of Maharashtra and not by any Act of Central, State or Province. We are of the considered view that whenever a financial legislation is interpreted, it has to be interpreted literally or in other words there has to be literal interpretation of the said provision. Meaning thereby what exactly is the intention of the legislature in respect of that particular provision, that exactly has to be read into it and one cannot improvise through judicial activism or otherwis....

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....UN/2019 wherein the ld. Counsel for the assessee appraised the Bench regarding earlier order of Pune Tribunal in ITA No.129/PUN/2021 (supra) and submitted that all these cases which were before the Tribunal for adjudication pertains to assessment taken place prior to the order passed by the Pune Bench of the Tribunal (supra). That whether now the assessee would get registration u/s 12AA of the Act that would have bearing on all these cases. Accordingly, the ld. Counsel for the assessee prayed that the matters may be remanded to the file of the ld. A.O. with a proper direction for re-adjudication based on determination of the status of the assessee as regards the issue of grant of registration u/s 12AA of the Act. The Tribunal after consider....