TaxTMI 
TaxTMI 
TaxTMI 
2015 (4) TMI 305
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.... Revenue, cross objections of the assessee and an appeal by the assessee. All these were directed against a common order passed by the Commissioner of Income Tax (Appeals) on 14th February, 2011. Mr. Malhotra, the learned counsel appearing on behalf of the Revenue in support of this appeal submits that this appeal raises substantial questions of law. They are formulated at pages 4 and 5 of the paper-book. They read as under : "A. Whether, on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal was justified in granting exemption u/s. 10(33) and 10(38) to the tune of Rs. 25.96 lakhs and Rs. 3.21 lakhs respectively, when this income forms a part of the income from property held under trust and therefore can o....
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.... 3. In relation to the first three questions Mr. Malhotra would submit that the Assessing Officer committed no mistake and his understanding of the provisions of law was accurate. Chapter III of the Income Tax Act, 1961, according to Mr. Malhotra, is entitled 'Incomes Which Do Not Form Part of Total Income'. Mr. Malhotra submits that the term "total income" appearing in section 10 and the wording of section 11 would indicate as to how what shall not be included in terms of section 10 in computing the total income of a previous year of any person will not govern the interpretation of section 11. That section deals with income from property held for charitable or religious purpose. Sub-section (1) of that section has in clear terms....
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....f section 10 would not apply. It is after such exclusions that the income from property held for charitable or religious purposes would have to be dealt with and in that amount the matters covered by section 11 would not be included. Therefore, when the words total income of the previous year of the person in receipt of the income have been used in both places, then, there was no scope for the Assessing Officer to arrive at the conclusion which he did. He was rightly corrected though his view was confirmed by the Commissioner of Income Tax (Appeals). The Tribunal's order does not give rise to the questions of law and particularly formulated as Questions (A) to (C). 5. In relation to the other three questions, Mr. Malhotra would submi....
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..... Therefore, on both counts, the appeal does not deserve to succeed and ought to be dismissed. 7. We have, with the assistance of the counsel appearing for both sides, perused the appeal paper-book and the impugned orders. The Assessing Officer was of the view that the return of income which was filed along with income and expenditure account, balance sheet, audited report and by assessee claiming to be a charitable organization needs scrutiny in the light of the legal provision and namely section 11 of the Income Tax Act. The Assessing Officer noted that a sum of Rs. 25,96,287/- received on account of dividend income is claimed as exempt under section 10(33) of the Income Tax Act. However, this income forms a part of the income from tru....
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....are of the view that the Tribunal was correct in setting aside these concurrent orders. The language of the two sections is plain and clear. The provisions, namely, sections 10 and 11 fall under a Chapter which is titled "Incomes Which Do Not Form Part of Total Expenditure" (Chapter III). Section 10 deals with incomes not included in total income whereas section 11 deals with income from property held for charitable or religious purposes. We have not found anything in the language of the two provisions nor was Mr. Malhotra able to point out as to how when certain income is not to be included in computing total income of a previous year of any person, then, that which is excluded from section 10 could be included in the total income of the p....
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....is expressly not there. In such circumstances, the Tribunal was right in its conclusion that the income which in this case the assessee trust has not included by virtue of section 10, then, that cannot be considered under section 11. 9. In the circumstances and when the income from property held for charitable or religious purpose is not a matter covered or dealt with by section 10 that the Tribunal's view cannot be termed as perverse or vitiated by any error or law apparent on the face of the record. The clear language of these provisions enables us to uphold the order of the Tribunal. It is, accordingly, upheld. The Revenue's appeal does not raise any substantial question of law. 10. Even with regard to other two matters, we....