COMMISSIONER OF INCOME TAX ANDHRA PRADESH Vs. ANDHRA PRADESH POLICE WELFARE SOCIETY

JUDGEMENT

(1.) The question for decision in this reference at the instance of the Revenue, is :

(2.) Before the above question was sought to be referred to this court at the instance of the Revenue, M.P. No. 63/79 was filed by the assessee before the Appellate Tribunal for giving a decision with respect to the sum of Rs. 1,98,791 which accrued as interest out of the principal sum of Rs. 56,97,657 which the Welfare Society-assessee-kept in a bank. This arose because of the fact that earlier in I.T.A. No. 595/79, which pertained to the principal sum which stood in the name of the assessee-society in a bank as a sequel to the raffle conducted on behalf of the society by the Government, one of the issues framed was :

(3.) Inasmuch as the Tribunal decided the said I.T.A. on an entirely different aspect, viz., as to whether the amount of Rs. 56,97,657 collected out of a raffle conducted on behalf of the society, was actually conducted by the society or by the State Government, eventually the decision was that the rifle was conducted by the State Government and, therefore, the question of the said corpus being exigible to income-tax did not arise. Consequently, the question of the society being considered whether a charitable trust or not, did not arise. In view of those circumstances, the above referred issue escaped the adjudication of the Tribunal as it was not necessary in the facts and circumstances of the case. Hence, the Appellate Tribunal, dealing with this question in M.P.No.63/79, held as under :