Income Tax Appellate Tribunal - Ahmedabad
Gujarat Safai Kamdar Vikas Nigam, ... vs Assessee on 7 March, 2016
I.T.A. Nos.2067 and 1982/Ahd/2011
Assessment years: 2008-09
Page 1 of 5
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD A BENCH, AHMEDABAD
[Coram: Pramod Kumar AM and Rajpal Yadav JM]
I.T.A. No.2067/Ahd/2011
Assessment year: 2008-09
Gujarat Safai Kamdar Vikas Nigam Limited .................................Appellant
Block No.16,
Dr. Jivaraj Mehta Bhavan,
Sector - 10,
Gandhinagar.
[PAN: AABCG 7818 C]
Vs.
Dy. Commissioner of Income Tax ..............................Respondent
Gandhinagar Circle,
Gandhinagar
I.T.A. No.1982/Ahd/2011
Assessment year: 2008-09
Aasstt. Commissioner of Income Tax .................................Appellant
Gandhinagar Circle,
Gandhinagar
Vs.
Gujarat Safai Kamdar Vikas Nigam Limited ...........................Respondent
Block No.16,
Dr. Jivaraj Mehta Bhavan,
Sector - 10,
Gandhinagar.
[PAN: AABCG 7818 C]
Appearances by:
A.N. Shah for the assessee
D.P. Gupta for the Assessing Officer
Date of concluding the hearing : December 22 nd , 2015
Date of pronouncing the order : March 7 th , 2016
O R D E R
Per Pramod Kumar, AM:
I.T.A. Nos.2067 and 1982/Ahd/2011 Assessment years: 2008-09 Page 2 of 5 These cross appeal are directed against the order dated 2nd May, 2011 passed by the learned CIT(A) in the matter of assessment under section 143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) for the Assessment Year 2008-09.
2. Grievance of the assessee is that "the learned CIT(A) has erred in law by holding that the appellant is not entitled to claim exemption under section 10(26B) of the Income Tax Act, 1961, though the appellant has been established for promoting the interests of safai kamdars who are invariably the members of Scheduled Class or backward classes".
3. To adjudicate upon this issue, only a few material facts need to be taken note of. The assessee before us, a company registered under section 25 of the Companies Act, was set up for the upliftment of 'safai kamdars' through various schemes in collaboration with the Government bodies and with National Safai Karmcharis Finance and Development Corporation and acting as channelizing agency, and for examining the problems of safai kamdars and trying to find solutions thereof. The Assessing Officer was of the view that the assessee is not eligible for exemption under section 10(26B) of the Act, as this exemption is available only for the bodies 'established or formed for promoting the interests of the members of Scheduled Castes or Scheduled Tribes or backward classes, or any two or all of them" whereas the assessee is formed for promoting the interests of safai kamdars. The Assessing Officer was of the view that "as the term 'safai kamdar' does not refer to the members of Scheduled Castes or Scheduled Tribes or backward classes, the exemption u/s. 10(26B) is not available to the I.T.A. Nos.2067 and 1982/Ahd/2011 Assessment years: 2008-09 Page 3 of 5 assessee". Aggrieved, assessee carried the matter in appeal before the learned CIT(A) but without any success. The assessee is not satisfied and is in further appeal before us.
4. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position.
5. We find that the expression 'safai kamdar', for all practical purposes, refers to one of the weakest class of members of Scheduled Castes, Scheduled Tribes or other Backward Classes. It is so for the reason that 'safai kamdars' refers to sweepers and scavengers, engaged in cleaning work, who invariably belong to these underprivileged sections of society. The purpose of this Corporation is to implement the schemes for upliftment of this segment of society and, as the clarification given by the State Government categorically states, the beneficiaries of these schemes are restricted to only Scheduled Castes or Scheduled Tribes. Undoubtedly, a literal interpretation of 'safai kamdar' could possibly include almost everyone engaged in cleaning work but that is not really material because this Corporation implements Government schemes for 'safai kamdars, and such Government schemes, according to the Government, are restricted to members of Scheduled Castes and Schedules Tribes. There can thus be no doubt that the Corporation is established and formed "for promoting the interests of members of the Scheduled Castes or Scheduled Tribes......" In this regard, we may refer to the contents of following clarification issued by the State Government:-
"CERTIFICATE This is to certify that all the Safai Kamdars, who are the beneficiaries under various schemes of Gujarat Safai Kamdar Vikas Nigam, are either the members of the Scheduled Castes and Scheduled Tribes within the meaning assigned to them in I.T.A. Nos.2067 and 1982/Ahd/2011 Assessment years: 2008-09 Page 4 of 5 Clauses (24) and (25) of the Article 366 of the Constitution of India and covered under the First Schedule and Second Schedule of the Scheduled Castes and Scheduled Tribes Orders (Amendment) Act, 1976, enacted by the Parliament in exercise of the powers conferred by Clause (2) of Article 341 and Clause (2) of Article 342 of the Constitution of India or the members of Backward Classes as notified by the Central Government or the State Government from time to time."
CERTIFICATE In furtherance to the Certificate No: MIS 102008-2667-G dated 29/12/2008, it is further certified that Gujarat Safai Kamdar Vikas Nigam has been established especially for the benefit of "Safai Kamdars" i.e. Sweepers & Scavengers engaged in unclean operations and their dependents who constitute weakest segment of members of Scheduled Castes, Scheduled Tribes and members of other Backward Classes (OBC). The purpose of mention of the word "Safai Kamdar" in the object clause of the Memorandum of Association of the Nigam is specifically to limit the benefits to this weakest class only as against entire Schedule Castes, Schedule Tribes and OBC communities."
6. It is also important to note that all that section 10(26B) of the Act requires is that the Corporation should be set up for "promoting the interests" of Scheduled Castes and Schedules Tribes etc. Section 10(26B) for ready reference, is reproduced below:-
"10(26B) any income of a corporation established by a Central, State or Provincial Act, or of any other body, institution or association (being a body, institution or association wholly financed by Government) where such corporation or other body or institution or association has been established or formed for promoting the interests of the [members of the Scheduled Castes or the Scheduled Tribes or backward classes or of any two or all of them].
[Explanation.- For the purposes of this clause,-
(a) "Scheduled Castes" and "Scheduled Tribes" shall have the meanings respectively assigned to them in clauses (24) and (25) of article 366 of the Constitution;
(b) " backward classes" means such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified-
(i) by the Central Government; or
(ii) by any State Government,
as the case may be, from time to time;]"
I.T.A. Nos.2067 and 1982/Ahd/2011
Assessment years: 2008-09
Page 5 of 5
7. In view of the above discussions, in our considered view, the assessee was indeed eligible for exemption under section 10(26B) of the Act. On this issue grievance of the assessee deserves to be upheld.
8. In the result, the appeal of the assessee is allowed.
9. As the assessee is held to be eligible for exemption under section 10(26B) of the Act, grievances of the Assessing Officer, which pertain to relief granted by the ld. CIT(A) quantum of disallowances made are rendered infructuous and wholly academic. It is not at all necessary to adjudicate on that aspect of the matter, at this stage.
10. The appeal filed by the Assessing Officer is thus dismissed as infructuous.
11. To sum up, while appeal of the assessee is allowed, the appeal of the Assessing Officer is dismissed. Pronounced in the open court today the 7 th day of March, 2016.
Sd/- Sd/-
Rajpal Yadav Pramod Kumar
(Judicial Member) (Accountant Member)
Dated: 7 th day of March, 2016.
Copies to: (1) The appellant (2) The respondent
(3) Commissioner (4) CIT(A)
(5) Departmental Representative (6) Guard File
By order
Assistant Registrar
Income Tax Appellate Tribunal
Ahmedabad Benches, Ahmedabad