The Weekly Obiter

BAR COUNCIL OF CHHATTISGARH IS ENTITLED TO EXEMPTION UNDER INCOME TAX ACT, 1961: CHATTISGARH HIGH COURT

May 16, 2018

The Hon’ble High Court of Chhattisgarh in a matter titled State Bar Council of Chhattisgarh versus Commissioner of Income Tax, Bilaspur and Others bearing Writ Petition (T) No. 6095 of 2007 held that the State Bar Council is entitled to exemption under Section 10 (23A) of the Income Tax Act, 1961.
The Hon’ble High Court of Chhattisgarh dealt with the issue whether notification dated 9-8-1966 ex-empting the State Bar Council of Madhya Pradesh under Section 10 (23A) of the Income Tax Act, ap-plicable in the erstwhile undivided State of Madhya Pradesh, would be applicable to the newly constituted State of Chhattisgarh, including the State Bar Council of Chhattisgarh.
In view of the same, the Hon’ble High Court of Chhattisgarh observed that:
“It is quite vivid that the notification dated 9-8-1966 issued by the Central Government exempting the State Bar Council of MP from taxation of income other than those specifically excluded under Section 10(23A) of the IT Act, was applicable and was in force in the new State of Chhattisgarh with effect from 1-11-2000 and would fall within the meaning of law under Section 2(f) of the Act of 2000 and by virtue of that, the State Bar Council of Chhattisgarh was entitled to have exemption under Section 10(23A) of the IT Act from the operation of IT Act, but that was not understood properly by the Income Tax Authorities and holding that the petitioner Council is not entitled for the said exemption.” 

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