2015 (3) TMI 716

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....Adv. & Ms Usha Dalal ORDER P. C. 1. This appeal by the Revenue under Section 260A of the Income Tax Act,1961 (the Act) challenges the order dated 19.10.2012 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order has been passed in respect of Assessment Year 2008-09. 2. The appellant - Revenue formulated the following questions of law for our consideration:- "....

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....ent-assessee Trust has been granted registration under section 12A of the Act by the Commissioner of Income Tax. Further the respondent - assessee also received grand-in-aid from the Government of Maharashtra to fulfill its charitable purpose of assisting physically handicapped persons. 3. The Assessing Officer was of the view that the respondent-assessee was commercially exploiting its propert....

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....ried the issue in appeal before the Tribunal. The Tribunal by the impugned order held that the income earned by letting out the property cannot be said to be business income. It also upheld the view of the CIT (Appeals) that rent income cannot be assessed as business income but has to be assessed as income from house property. The impugned order also records that the amount received on account of ....

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....he provisions of Section 11 would not apply to income of a Trust arising from business, unless the business is incidental to attainment of the objectives of a Trust and separate books of account are maintained. It is submitted by Mr.Malhotra, learned Counsel for the Revenue that in the present facts, the business is not incidental to the objectives of the Trust and respondent-assessee is not maint....