2006 (2) TMI 108

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the Income-tax Appellate Tribunal, Madras, "C" Bench in I.T.A. Nos. 4186, 4187 and 4188/Mds/87 and the same were admitted on July 23, 2004. The common substantial questions of law raised in the above appeals are as under: "1. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that section 13(1)(bb) would not apply to the trust although it was carrying on business? 2. Whether the ratio of the Supreme Court's judgment in the case of Asst. CIT v. Thanthi Trust [2001] 247 ITR 785 is not squarely applicable to the facts and circumstances of the case?" The facts leading to the above questions of law are as under: The assessment years are 1981-82, 1982-83 and 1983-84 and the accounting years ende....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rting education to the Indian public. (d) To build, erect and construct and to aid and assist in the building, erection and construction of houses, tenements and places of residence for the poor, needy and defectives and to afford them all comforts and amenities. (e) To conduct poor feeding and to give food, clothing and cash grants to the poor, needy and defectives and to afford relief to people in distress and affected by earthquake, flood, famine, pestilence and other causes and to grant donations for the support of the inmates of orphanages, rescue houses and similar institutions and societies. (f) To engage in, carry on, help, aid and assist and promote rural reconstruction work, cottage industries and all other matters incide....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Assessing Officer. Aggrieved by that order, the Revenue filed an appeal to the Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal dismissed the Revenue's appeal and confirmed the order of the Commissioner of Income-tax (Appeals) and held that the assessee-trust was entitled to exemption under section 11, as a charitable trust. Standing counsel appearing for the Revenue stated that the assessee was not entitled to the benefit of section 11 on the ground that it was hit by the provisions of section 13(1)(bb) of the Act. Further, it was stated that the present issue is covered by a decision of the Supreme Court reported in the case of Asst. CIT v. Thanthi Trust [2001] 247 ITR 785. Learned counsel for the assessee submitte....