Commissioner of Income Tax vs Sir Shobha Singh Public Charitable Trust

Allowed subject to all just exceptions. The revenue''s appeal being IT Appeal 739/2008 pertaining to the assessment year 2001-02 proposed to raise the very same questions which have been proposed in the present appeal. That appeal (IT Appeal 739/2008) came up for hearing before this Court on 15-7-2008 when this Court passed the following order:-

"15-7-2008 Present: Ms. Prem Lata Bansal for the appellant / revenue.

Ms. Kavita Jha for the respondent.

+ ITA NO. 739/2008

* The revenue has filed this appeal pertaining to assessment year 2001-02. The following five questions have been proposed:-

''a) Whether ITAT was correct in law in allowing accumulation of income u/s 11(2) of the Act to the assessee ?

b) Whether ITAT was correct in law in deleting the addition of Rs. 41,000 made by the Assessing Officer on the ground that by charging lower rent, undue benefit was granted by the assessee to the related concern?

c) Whether ITAT was correct in law in confirming the order passed by CIT(A) and thereby deleting addition in contravention of provisions of section 13(2) of me Act?

d) Whether ITAT was correct in law in deleting the addition of Rs. 4 lacs made by the Assessing Officer ignoring the fact that benefit was derived by the Trustees by letting out furniture & fixtures claimed to be belonging to the Trustees?

e) Whether investment in shares of Narmada Valley Refrigerated Products Limited and of Sir Shobha Singh Pvt. Ltd. are violative of provisions of section 11(5) r/s section 13(1)(d) of the Act?''

In so far as the question (a) is concerned, the same is already covered by a decision of this Court in Commissioner of Income Tax Vs. Hotel and Restaurant Association, The said decision is in favour of the assessee and against the revenue. With regard to question (e) the same also stands covered by the decision of this Court -in the case of the present assessee itself in favour of the assessee. The said decision is reported as Commissioner of Income Tax Vs. Sir Sobha Singh Public Charitable Trust, . Question (d) turns upon pure findings of fact. In solar as the question (c) is concerned, the same is general in nature and would only arise if questions (b) and (e) were to have been framed. This leaves us with question (b) in which the addition itself is only of Rs. 41,000 and, consequently, the tax effect would be even far less than that. In these circumstances, no substantial question of law arises for our consideration. The appeal is dismissed."

The present appeal pertains to the assessment year 2002-03 and involves the same issues. For the reasons indicated in the order dated 15-7-2008 passed in IT Appeal 739/2008 the present appeal is also dismissed.