2015 (5) TMI 226

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....he facts and circumstance of the case and in law, the Hon'ble Tribunal is justified in granting exemption u/s.11 of the Income Tax Act, B. Whether, on the facts and circumstance of the case and in law, the Hon'ble Tribunal is justified in allowing the claim of the assessee for exemption u/s.11 ignoring the fact that the Assessing Officer in his order has pointed out specific defects in treating the income earned by levying surcharge at a specific rate for the bills raised on patients and doctors on the fees paid to them and treating them as corpus donation instead of income earned from the activities of the trust ? C. Whether, on the facts and circumstance of the case and in law, the Hon'ble Tribunal is justified in ignori....

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....ibunal's order for prior assessment year have been questioned by the revenue and any appeals are pending in this Court, still, it is clear that the observations of the Commissioner while denying exemption under section 10(23C) of the I.T. Act cannot be confined to that case. Mr.Malhotra has taken us through the assessment order and particularly the paragraphs wherein it has been held that the surcharges have been levied and collected. The Commissioner also does not indicate that this is permissible course but makes distinction with regard to income exempted under section 11 and exemption under section 10(23C) of the I.T. Act. Mr.Malhotra would submit that such a distinction was impermissible and particularly when the assessee undertakes....

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....tly. The question No.C, therefore, does not arise from the Tribunal's order at all. 10. Insofar as exemption under section 11 is concerned, in paragraph 5 of its order, the Tribunal has found that for the assessment year 2005-06, the only reason for not applying the Tribunal's order for earlier assessment years and as recorded by the assessing officer is that the revenue or the department has not accepted the said order. However, in the light of the fair concession of Mr.Malhotra that the tribunal's orders, on same facts as rendered for the earlier assessment years, have not been challenged by the revenue, then, we cannot fault the Tribunal or Commissioner for applying them. It is clear from the Tribunal's order that ther....

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.... and particularly in relation to these matters is an aspect directly covered by the Bombay Public Trust Act. In that regard perusal of the said Act and particularly the provisions of Chapter V, V-A and section 40 and 41-A would indicate that the Charity Commissioner can from time to time issue directions to any trustees of the Public Trust or any person connected therewith to ensure that the trust is properly administered and the income thereof is properly accounted for or duly appropriated and applied to the objects and for the purposes of the trust. The Charity Commissioner has been conferred with the powers to give directions to the trustees, in the event, he finds that the trust property is in danger of being wasted, damaged, alienated ....