TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 733
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....tion of registration by the ld CIT(E), Hyderabad u/s. 12AA of the act and subsequently granted to the appellant. Against such rejection order an appeal being No.175/CTK/2023 which is the connected appeal and consequential to the aforesaid appeals was filed by the appellant. However, this bench have not condoned the delay as some curable defects committed by the appellant in the condonation petition. So far as the appeal being No.175/CTK/2023 relates to rejection of registration is concerned, the appellant tries its best to get appropriate relief for condonation of delay from the Hon'ble High Court of Orissa. Since the regular tax bench of the Hon'ble High Court is not functioning for summer vacation, only exceptional urgent matters which cannot wait till the reopening of High Court will be moved before the Hon'ble Vacation Judges for this reason appellant has been restricted to move towards the Hon'ble High Court. 2. That yesterday on 5.6.2024 morning the old ailing bed ridden father of the undersigned advocate has been suddenly ill and under treatment, attend by him today. Under such constrict circumstances the undersigned advocate unable to appear personally before this Hon'ble....
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....ality of the Govt. of Odisha formed solely as a society has been registered under the registration of Societies Act. That the appellant assessee swathya Bikash Samiti Medical College and Hospital Cuttack was created under the societies Registration Act. This society was created as per the direction of Health and Family Welfare Department of Govt. of Odisha. As per the mandate and direction from the Govt of Odisha the Appellant being a fully fledged Govt agency has received User Fees from the patients for specific purpose and for implementation of scheme and for certain obligation attached there to as decided by the Govt. It well settled that any amount received from the Govt for any specific purpose and certain obligations were attached hereto it could not be treated as revenue receipts. In the present case the Grant-In-Aid has been received by the appellant from the Govt. for specific purpose as decided and here was no control or domain over the funds by the appellant in its own right. The appellant being a conduit pipe to channelize the amount received from the patients for certain specified objectives. The impugned receipts were therefore not in the nature of revenue receipts ch....
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....urposes rather the dominant object of the society as provide medical facilities to the public. It is also a very vital fact that those token fees has been fixed by the Govt of Odisha and as per the Govt Instruction from time to time there after expenditures have been made to provide medical facilities to the people of the state. Therefore it is a full fledged Govt Society and is a part and parcel of the medical activities to provide hospital and medical treatment facilities to the people of the state. Further the token User Fees collected by the Assessee completely fixed and guided by the Govt instructions and notifications. Presently, the Govt. of odisha has decided to give grant to the society and collection of user fees has been stopped by the govt. of Odisha. Under such circumstances, the user fees so collected earlier has been treated as grant to the society for its activities and the Gvot. Of Orisha has full domain and control over the user fees so collected on behalf of the govt. by the assessee society. Thus, under such factual background, it is established that the society is wholly financed by the Gov. of Odisha. The assessee society in order to provide medical facilities....
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....ng a square deal from the Department. Now, in the present case, clearly in the initial stage, the assessee had not claimed all the benefit of deduction u/s. 10(23C) nor the status of 'State'. But the facts were very much before the Assessing Officer. SCB Medical College and Hospital and the impugned Swastyhha Bikas Samiti functions at Cuttack as one of the biggest and primary and specialist Govt. hospital doing novel work in the field of medicine. In case of any untoward incident in the State, patients are rushed to SCB Medical College & Hospital. It has created a name for itself and it is also well-known as one of the best Govt. hospital in the State. When so much is known and it is also well known that it is a Government Organisation, and to deny such organization, just because it has not got registration u/s. 12A, but it is entitled to deduction under other relevant provisions of the Act, it would be nothing but travesty of justice. Here, it would be worthwhile to extract the provisions of Section 10(23C)(iiiac), which reads as follows: "10(23C)(iiiac) -any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness o....
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....umstances of the case, the appellant may kindly be held as a ―State making it not liable to pay income tax under the Income Tax Act, 1961 as per the provisions of Article 12 read with Article 289 of The Constitution of India. 10. Written submission in support of the additional ground submitted in paper book was as under:- Written submission for Additional Ground 1. The appellant has already sought the leave of this Hon'ble Bench to take the following additional ground. "On the facts and in the circumstances of the case, the appellant may kindly be held as a "State" making it not liable to pay income tax under the Income tax Act, 1961 as per the provisions of Article 12 read with Article 289 of The Constitution of India." 2. Now, in support of this additional ground, the appellant would like to present its submission in the following paragraphs. 3. Article 12 of the Constitution of India defines the term "state" as under: Definition In this part, unless the context otherwise requires, the State includes the Government and Parliament of India and the Government and the Legislature of each of the States and all local or other authorities within the territory of I....
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....om Prakash Rekhi vs Union of India, has also held that payment to (i) M/s Rajasthan State Beverages Corporation Ltd and (ii) M/s Rajasthan State Ganganagar Sugar Mills Ltd. would not be hit by the provisions of section 40A(3) of IT Act, 1961 as these undertakings fall within the meaning of the term "Government". [Annexure-B; Page 15-21] 8. Similarly, in the case of Maharashtra State Board of Technical Education v. ITO [2019] 104 taxmann.com 98 (Mumbai - Trib.) it has been held that Maharashtra State Board of Technical Education, a statutory body established under Maharashtra State Board of Technical Education Act, 1997, being under complete superintendence, and control of State Government financially as well as administratively fall under definition of 'State' as per Article 12 of Constitution of India and therefore, its income is not chargeable to tax.[Annexure-C; Page 22-39] 9. Recently, this Hon'ble Bench in the case of State Council for Technical Education & Vocational Training v. CIT(Exemptions), Hyderabad in ITA No.414/CTK/2018 has, vide order dated 17.05.2022, held that the appellant assessee is a "State" under the Article 289 of the Constitution of India. [A....
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.... and closely related to governmental functions" is also fulfilled. 16. As per NOTIFICATION No.l7402-HUD-13-REFM-65-SCH-17- 0065/2014/HUD dated 09.07.2015 [Refer Page-23 of original paper book dated 27.05.2022] the main objectives of the Company i.e. WATCO is to take over from the Public Health Engineering Organization (PHEO), the functions in regard to Operation & Maintenance of water supply and sewerage services at present being handled by it together with assets and liabilities pertaining to such activities. 17. Thus, the 5th test regarding transfer of a department of Government to a corporation is also fulfilled in the present case. 18. It is therefore submitted before this Hon'ble Bench that the Appellant may kindly be declared as a state making it not liable to pay income-tax under the Income tax Act, 1961 as per the provisions of Article 12 read with Article 289 of The Constitution of India. 11. On the contrary, Ld DR has supported the orders of the Ld CIT(E) and submitted that the rejection order was justified, as the assessee was failed before the Ld CIT(E) to substantiate that the resolution passed for amended in objectives of the assessee company were register....
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.... are not confined to statutory corporations alone. We may decoct the tests for ready reference: 1. "One thing is clear that if the entire share capital of the corporation is held by Government, it would go a long way towards indicating that the corporation is an instrumentality or agency of Government. 2. "Existence of "deep and pervasive State control may afford an indication that the Corporation is a State agency or instrumentality." 3. "It may also be a relevant factor........whether the corporation enjoys monopoly status which is the State conferred or State protected." 4. "If the functions of the corporation are of public importance and closely related to governmental functions, it would be a relevant factor - in classifying the corporation as an instrumentality or agency of Government." 5. "Specifically, if a department of Government is transferred to a corporation, it would be a strong factor supportive of this inference" of the corporation being an instrumentality or agency of Government." 15. We have carefully perused the submissions of the assessee (supra) regarding fulfillment of the aforesaid tests/conditions carved out by the Apex court and found that the a....