TaxTMI 
TaxTMI 
2008 (11) TMI 37
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....AKDHER BADAR DURREZ AHMED, J (ORAL) 1. These appeals are directed against the common order dated 30.11.2007 passed by the Income Tax Appellate Tribunal in respect of assessment years 2002-2003 and 2003-2004 Common issues have been raised in respect of both the years. The assessee is a charitable trust. It purchased certain land. Thereafter, it constructed a building out of borrowed f....
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....ble purpose. The Assessing Officer and the Commissioner of Income Tax (Appeals) held in favour of the revenue and denied the exemption under Section 11 and 12 of the Income Tax Act, 1961 (hereinafter referred to as the "said Act"). Both the authorities also held that the provisions of Section 13 (1)(c) read with Section 13 (3) of the said Act had been violated and, therefore, the exemption could n....
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.... re-payment of the loan, in these circumstances, has to be regarded as application of income for charitable purposes. The Tribunal accepted this plea of the assessee. The Tribunal noted that if the argument of the revenue was to be accepted, then it would amount to concluding that the assessee could not utilize the rental incomes received by it from the lease of the property for charitable purpose....
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....were adequate or not? In this regard, the Tribunal remanded the matter to the Assessing Officer to decide the question of adequacy in accordance with law, after affording the assessee an opportunity of being heard. However, while doing so, the Tribunal noted its earlier decision in the case of Rabhubir Saran Charitable Trust v. Income Tax Officer where the view was taken that if the rent charged b....