Section 11 exemption under section 11(4A) required fresh factual examination before trust income relief could be determined.

Entitlement to exemption under section 11 of the Income-tax Act, 1961 depended on compliance with the conditions introduced by section 11(4A). For the assessment years after that provision came into force, neither the Tribunal nor the High Court had examined those statutory requirements or recorded findings on whether they were satisfied. The Supreme Court therefore set aside those orders and restored the matter to the Tribunal for fresh consideration on the basis of section 11(4A).

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Issues: Whether the assessee was entitled to claim exemption under section 11 of the Income-tax Act, 1961 in view of the conditions introduced by section 11(4A), and whether the matter required fresh factual examination by the Tribunal.

Analysis: The assessment years involved were 1984-85 and 1985-86, after the introduction of section 11(4A). The entitlement to exemption under section 11 depended upon whether the assessee satisfied the requirements imposed by that provision. The record showed that neither the Tribunal nor the High Court had examined those statutory conditions or recorded findings of fact on their satisfaction.

Conclusion: The issue was not finally decided on merits; the orders of the High Court and the Tribunal were set aside and the matters were restored to the Tribunal for fresh consideration in the light of section 11(4A).

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