2007 (8) TMI 315

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....955. By order dated July 31, 2000, in respect of the assessment year 2000-01, the assessing authority noted that the assessee is registered as a charitable institution under the provisions of section 12A(a) of the Central Income-tax Act, 1961. On the inspection conducted on July 28, 2000, the assessing authority pointed out that the petitioner herein runs the society for educational and charitable purposes for all persons irrespective of religion, race, caste, community or social status. It s also stated that a large portion of the society's income is spent on the training of young priests all over India. In the circumstances, the assessing authority granted the exemption. 3. On the proceedings initiated under section 34 of the Tamil Nadu ....

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.... agricultural income and there was no composite income. In the circumstances, exemption granted under the Income-tax Act could not be of relevance for considering the plea of exemption under the Tamil Nadu Agricultural Income-tax Act. The Commissioner also pointed out that the trust deed had not been produced. 6. Learned counsel appearing for the petitioner submitted that on production of copy of the certificate issued by the Income-tax Officer, Ooty, the assessee was exempted from the tax under section 11 of the Income-tax Act for the assessment year 2001-02. Learned counsel also pointed out that the certificate issued under section 12A(a) of the income-tax was only to substantiate its status as a trust entitling for exemption as an educa....

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.... the Income-tax Act, per Se, does not enure to the benefit to the assessee entitling for an exemption under the Tamil Nadu Agricultural Income-tax Act. 10. As far as the exemption under the provisions of the charge under the Tamil Nadu Agricultural Income-tax Act is concerned, section 4(b) is the relevant section. The same reads as follows: "4. Total agricultural income.- Subject to the provisions of this Act, the total agricultural income of any previous year of any person comprises all agricultural income derived from land situated within the State which is received by him or which accrues to him within or without the State, but does not include-......... (b) any agricultural income derived from property held under trust, wholly or par....

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....said phraseology, it would lead to absurd results. In the process of interpretation of the phraseology as extracted above, we have to accredit wisdom and knowledge to the Legislature in enacting such a clause to the relevant provisions of the Income-tax Act and the provisions of the Constitution we have earlier referred to ; and that perhaps was the reason they have introduced clause (b) of section 4 to the tax "agricultural income" from property held under trust for religious or charitable purposes in the same manner, as had been enacted in the Income-tax Act, as relatable to non-agricultural income from property held under trust for religious and charitable purposes for the purpose of income-tax. Certain consequences are to flow from what....