2010 (2) TMI 146

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at arises for consideration which has been framed at the time of admission is whether the income derived by the charities from letting out of kalyana mandapam on licence could be considered as a property income or business income. 3. The Assessing Officer found that the income derived by the charities by letting out the kalyana mandapam is a business income and accordingly made the Assessment order. On appeal, that order of the Assessing Officer was upset by the Commissioner of Income-tax (Appeals) following the judgment of this court made in the case of CIT v. Samyuktha Gowda Saraswatha Sabha reported in [2000] 245 ITR 242 holding that the income from letting out of the kalyana  mandapam by the trust did not constitute income from ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ision of section 22 and section 56 of the Income-tax Act with reference to the income by letting out building for marriages. Having noticed that the building was let out by the assessee to others for functions such as marriages and other functions and making available the premises for limited periods, and chairs, mikes, etc., were also made available to others for which a charge was levied and the letting out is only for a limited purpose and for a limited period and by way of licence vis-a-vis the lease granted in respect of the property on monthly or yearly basis. Having regard to the above circumstances, this court had said that the income derived from letting out of hails for marriage purposes would be a business income as defined under....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and the work in connection with the business is mainly carried on by the beneficiaries of the institution. 8. From the reading of both the orders of the Commissioner of Income-tax (Appeals) as well as the Tribunal, we are unable to find as to whether the trust in question would be entitled to exemption in terms of the above provision with regard to the profits and gains of business. 9. It is pertinent to point out that the above provision of sub-section (4A) was replaced by insertion of a new provision with effect from April 1, 1992, and that section reads as follows: "11. (4A) Sub-section (1) or sub-section (2) or sub-section (3) or sub-section (3A) shall not apply in relation to any income of a trust or an institution, being pro....