2008 (9) TMI 528

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....udgment of the court was delivered by 1. K. Raviraja Pandian J.-The Revenue on appeals against the orders of the Tribunal dated December 16, 2005 in I. T. A. Nos. 1394/Mds/1999, 1480/Mds/2000, 1481/Mds/2000 and 1482/Mds/2000. The relevant assess-ment years are 1996-97, 1997-98, 1998-99 and 1999-2000. 2. The assessee-trust filed return of income admitting "nil" income and claimed exemption un....

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....see dated December 27, 2004 in I. T. A. No. 103/ Mds/98 confirmed the order of the Commissioner of Income-tax (Appeals). The correctness of the same is now canvassed before this court by the Revenue by formulating the following question of law : "Whether, in the facts and circumstances of the case, the renting out of kalayana mandapam is a commercial activity or not for the purpose of claiming ....

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....ll permitted carrying out improvements to land and property. It allowed lending of money on interest and developing of the estate. He considered the provisions of clauses 8, 92, 20 to 63 and other clauses of the will. One of the objects pertained to the kalyana mandapam and giving the same on rent with the sole object that rental income from the kalyana mandapam should be applied to charitable pur....

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....ourt, we uphold the order of the Commissioner of Income-tax (Appeals) and dismiss the appeal by the Revenue." 6. Having regard to the above said judgment, the Tribunal also took notice of the observations of the Supreme Court in Asst. CIT v. Thanthi Trust [2001] 247 ITR 785, wherein it has been held as under (page 796) : "A business whose income is utilised by the trust or the institution fo....