2010 (8) TMI 1174 - HC - Income Tax

High Court rules for Trust in ITA appeals, affirming exemption under Income-tax Act.

The High Court ruled in favor of the assessee Trust in ITA Nos. 131, 153, and 247 of 2010, finding that the questions raised were settled in a previous ... - Issues involved: The judgment involves the consideration of substantial questions of law in ITA Nos. 131, 153, and 247 of 2010 regarding the eligibility of the assessee Trust for exemption u/s 11 and 12 of the Income-tax Act, 1961.ITA No. 131 of 2010: The substantial questions of law in ITA No. 131 of 2010 revolved around whether the assessee is carrying out activities incidental to the main objects of the Corporation for which it has been granted registration under Section 12AA, and whether the assessee Trust is eligible for exemption u/s 11 and 12 of the Income-tax Act, 1961 despite engaging in business activities with profit motives rather than charitable activities.Judgment Details: The High Court heard the arguments from both parties and noted that the questions raised in ITA No. 131 of 2010 were similar to those addressed in a previous order in ITA No. 563 of 2006 (Commissioner of Income-tax, Panchkula v. The Haryana Warehousing Corporation). The Court found that the questions were already settled in the earlier order, where it was decided in favor of the assessee. Consequently, the Court ruled against the revenue and in favor of the assessee, leading to the dismissal of the appeals. The Court directed a copy of the order to be placed on the files of the connected cases for reference.Conclusion: The High Court's judgment resolved the issues raised in ITA Nos. 131, 153, and 247 of 2010 by referring to a previous order and ruling in favor of the assessee Trust regarding its eligibility for exemption u/s 11 and 12 of the Income-tax Act, 1961.