High Powered Committee formed to administer the Fund not a separate entity from State
IN THE INCOME TAX APPELLATE TRIBUNAL
The Relevant Text of the Order as follow :
We also do not find any merit in the argument of the Revenue that the assessee itself has admitted being a distinct and separate entity from the state while applying for a grant of registration u/s 12A of the Act and filing income tax returns, it cannot now take a contrary stand. Undoubtedly the aforesaid admission of the assessee related to an interpretation of facts and did not relate to admitting a fact. Merely because the assessee had interpreted the facts relating to its creation and administration as demonstrating itself to be an entity distinct and separate from the state, while seeking registration u/s 12A of the Act, does not stop the assessee from taking a contradictory stand, which is in accordance with the law, in any other proceeding.
After all the purpose of the entire exercise of assessment proceedings, including appellate proceedings, is to determine the taxable income as per the correct interpretation of law applied to the facts of each case. We, therefore, do not find any merit in the contention of the Revenue that the assessee having itself admitted to being an entity that the assessee having itself admitted to being an entity separate and distinct from the state in proceedings u/s 12A of the Act cannot now take a contradictory stand, and dismiss the same. At the same time we hold that considering our findings as above that the assessee Fund was not an artificial juridical person, the Revenue is free to take all necessary action as a consequence, within the framework of the law.
Also merely because the assessee fund no longer requires the approval of the Finance Department of the state while utilizing the funds, does not in our view alter or impinge upon its character as held by us as being the money of the state kept aside for the specific purpose. The presence of the Revenue Secretary in the high powered committee takes care of the requirement of obtaining approval of the Finance Department for utilization of funds.
Tags: Judgement, Appellant Tribunal, Income Tax
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