2013 (2) TMI 180

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Act, 1961 and/or the income of the assessee for the accounting year relevant to the assessment year 1977-78 was not exempt under section 11 of the Act keeping in view Section 13(1)(bb) of the Act?" 2. Briefly stated the facts giving rise to the present Reference are as follows:     The Reference relates to the Assessment Year 1977-78. The assessee-opposite party was assessed in the status of 'Association of Persons'. The Income-tax Officer after going through the aims and objects of the assessee-society as are clear from the Memorandum of Association of the assessee, has for the reasons stated in the assessment order in the case of the assessee for Assessment Year 1974-75, which was followed in the subsequent years, he....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d that the main object of the assessee was "education". He also held that the assessee was carrying on the activity for profit by carrying on the business of general insurance agency. On the premises stated hereinbefore, the ITO held that the assessee-trust was hit by section 13(1)(bb) of the Act. The assessee was, therefore, not entitled to the exemption under Section 11 of the Act. 4. Aggrieved by the said assessment, the assessee brought the mater by way of appeal before the CIT(Appeals)-VIII, New Delhi, who has agreed with the ITO that the assessee as in the past carried on the insurance agency business and the other main object of the assessee society was of general public utility. The activity for profit in the shape of the said bu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the licence as early as 17.1.1958 from the Government of India, Department of Insurance as an insurance agent under Part II of the Insurance Act, 1938 for general insurance business only. It had worked as insurance agent and had applied the income in charitable activities. The Tribunal has held that the insurance business is wholly held in trust and outside the purview of section 13(1)(bb) of the Act. The Tribunal has followed decision of this Court in the case of this this very assessee as also the earlier orders of the Tribunal in the matter. 8. In the case of M/s. Radhasoami Satsang, Agra vs. Commissioner of Income Tax, 1992 UPTC 96, the Apex Court has held that strictly speaking res judicata does not apply to income tax proceedings....