Case Law Details
Maharashtra State Board of Technical Education (MSBTE) Vs ITO (ITAT Mumbai)
The issue under consideration is whether CIT(A) is correct in holding that the appellant is not a ‘state’ under Article 289 of the Constitution of India and therefore, liable to tax under the Income Tax Act?
In the present case, the department has initiated assessment proceedings under section 143 r.w.s. 147 of the Income Tax Act, 1961 against the assessee, an autonomous board of education in the state of Maharashtra stating that the appellant is not a “state” under Article 289 of the Constitution of India and therefore, liable to tax under the Income Tax Act.
ITAT after considering the facts, states that the assessee Board is under complete superintendence, and control of the State Government financially as well as administratively falls under the definition of “State” as per Article 12 of the Constitution of India. And in their view is entitled for immunity from the taxation of its income under the provisions of Income -tax Act. Further ITAT state that CBDT vide its notification date 29.03.2016 has granted exemption of taxation to the assessee board.
Hence, respectfully following the same, ITAT hold that the assessee is “State” under Article 289 of the constitution of India, and is entitled to immunity from taxation under the Income Tax Act 1961 and the plea of the assessee is thus sustained.
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