TaxTMI 
TaxTMI 
2011 (3) TMI 601
X X X X Extracts X X X X
X X X X Extracts X X X X
....aw. "1.Whether in the facts and circumstances of the case, the Tribunal erred in law in upholding the reassessment when no case was made out for invoking the provisions of Section 147 and Section 148 of the Income Tax Act, 1961? 2.Whether in the facts and circumstances of the case, the Tribunal was justified in denying exemption under Section 11 even though corpus donations were received which are capital receipts not liable for taxation? 3.Whether the Tribunal was justified in denying exemption under Section 10(22) without directing the lower authorities to go into the facts of the case? 4.Whether the Tribunal was justified in considering the applicability of Section 10(22) when the departmental appeal merely disputed the action of CIT....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the Trust. It is stated that the Trust enjoyed exemption under Section 11 of the Act. As regards the assessment years in question viz., 1995-1996 to 1999-2000, the 'nil' returns filed were processed under Section 143(1)(a) and the same were accepted. However, the assessments were sought to be re-opened under Section 147 of the Act on the ground that the Trust had made deposits in a sister concern in which the Trustees were interested and hence, there was violation of the provisions of Section 11(5) of the Act, thereby, attracting the provisions of Section 13(1)(d) of the Act. The assessee, however, pleaded that the Trust received contributions to the corpus only and as per Section 12, such capital receipts should not be brought to tax. Th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ivities like construction of kalyana mandapam, running orphanages etc., Hence the assessee is not eligible for the benefit of Section 10(22) or 10(23) of the Act. Thus the Tribunal came to the conclusion that the assessee was not solely engaged in the educational institutions, but also other activities, which is of composite character. 6. However, as regards the finding of the Tribunal that the Trust was constructing Kalyana mandapam and running orphanage, the assessee filed a petition under Section 254(2) to set right the factual errors in the order in M.P.No.110/Mds/2004 in ITA Nos.847 to 851/Mds/2003 & Co. Nos.85 to 89/Mds/2003. After the disposal of the appeal, by order dated 23.08.2004, the Tribunal held that having regard to the term....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the revenue took us through the order of the Tribunal only to point out the findings as regards the violation of requirement under Section 11(5) of the Act to reject the claim for benefit under Section 12 of the Act as well as to the order, the order of the Tribunal in M.P. as regards the findings of fact that the assessee-Trust was not solely engaged for the educational purpose. Having regard to the above said facts, the learned Senior Standing counsel submitted that no questions of law arise for consideration of this Court. 10. Heard the learned counsel appearing on either side. 11. A perusal of the order of the Tribunal, particularly, paragraph 8 shows that the Tribunal found as a matter of fact that the assessee could not be considere....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... had been failed to satisfy the conditions laid down therein. 13. The only other position remains is entitlement of the assessee to fall under Section 10(22) of the Act. As far as this question is concerned, it is for the assessee to canvass before the assessing authority by producing necessary materials to substantiate his claim in the context of the provisions of Section 10(22) of the Act. The Tribunal had not adverted to in the order as to the applicability of provisions of Section 10(22) and Section 11(5) on the claim of the assessee. In the background of the findings of the Tribunal and upholding the order of the Tribunal on this aspect, the proper course herein would be to leave this question open for the assessee to canvass before t....