THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI RAMESH RANGANATHAN REFERRED CASE NO.90 OF 1996 23.08.2010 Between: The Commissioner of Income Tax, Andhra Pradesh-II, Hyderabad. …. Applicant AND A.P.State Civil Supplies Corporation Limited, Hyderabad. …Respondent THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI RAMESH RANGANATHAN REFERRED CASE No.90 OF 1996 ORDER: (per Hon’ble Sri Justice V.V.S.Rao) (i) Whether, on the facts and in the circumstances of the case, the ITAT is correct in law in holding that the assessee – Corporation is a charitable institution and it is exempt from sur tax? and (ii) whether, on the facts and in the circumstances of the case, the ITAT is correct in law in holding that the assessee – Corporation is a charitable institution and thus dismissing the appeal of the Department?. These are the two questions referred to this Court by the learned Income Tax Appellate Tribunal at the instance of the Revenue. The Junior standing counsel for Income Tax Department has brought to the notice of this Court an unreported order, dated 04.03.2003 in Referred Case No.59 of 1992, in which, similar questions were answered in favour of the assessee as follows. For the aforesaid reasons, we do not find any reason or justification to take a different view other than one taken by the appellate Tribunal. As has been rightly observed by the appellate Tribunal, even if any dividends are declared, the utilization of the same by the Corporation is undoubtedly for public purpose. Therefore, the Corporation does not lose its character of charitable nature. In such view of the matter, the 1st question referred for our opinion is answered against the Revenue and in favour of the assessee. … So far as the next question is concerned, the appellate Tribunal took the correct view that whether the amendment to clause 28 of the Memorandum of Articles of Association took effect from 16.11.1981, the date which fell prior to the commencement of the accounting period on 2-1-1989 or a date which fell subsequent to the accounting period is of no consequence and has no relevance. Since the Tribunal had arrived at the conclusion that the activities are charitable in nature within the meaning of Section 2(15) of the Act, the view taken by the Tribunal is absolutely correct and does not suffer from any infirmity. For the aforesaid reasons, it is unnecessary to answer the question referred for our opinion at the instance of the assessee. Following the same, the questions referred are answered in similar terms in favour of assessee. The referred case is accordingly disposed of. _______________ (V.V.S.RAO, J) ______________________________ (RAMESH RANGANATHAN, J) 23.08.2010 pln