Commissioner of Income Tax-II vs Sikh Education Society

Adarsh Kumar Goel, J.—The revenue has preferred this appeal u/s 260A of the Income Tax Act, 1961 (for short, "the Act") against the order of Income Tax Appellate Tribunal, Chandigarh Bench-B dated 30.6.2008 passed in ITA No. 315/Chandi/2008 for the assessment year 2005-06, proposing to raise following substantial question of law:

Whether on the facts and circumstances of the case and in law, the Hon''ble ITAT was justified in holding, that the mere fact that assessee was a Society/other institution and not a trust would not disentitle it from the exemption u/s 11/12 of the Act, without appreciating the fact that the assessee was Registered under Societies Act, 1860 and not under Indian Trust Act, 1882 as such does not qualify for exemption u/s 11(1)(a) of the Income Tax Act, on the income which is derived from the property not held under a trust.

The assessee is running a educational institution and claimed exemption u/s 11(2) of the Act in respect of income derived from interest of saving bank account and Fixed Deposit Receipts. The Assessing Officer disallowed the said exemption on the ground that the assessee was only a society and not a trust. This view was reversed by the CIT(A) as well as by the Tribunal.

Learned Counsel for the assessee relies upon order of this Court dated 15.12.2008 passed in ITA No. 609 of 2007 (The Commissioner of Income Tax, Panchkula v. Haryana C.M. Relief Fund, Chandigarh), wherein, it was held that in view of the explanation to Section 13(1) of the Act, the term ''Trust'', includes any other legal obligation, once the property was for charitable purpose. The said order was followed in the case of the assessee on 16.3.2009 in ITA No. 728 of 2008.

Learned Counsel for the appellant submitted that claim of the assessee being u/s 10(23C), exemption u/s 11 of the Act could not be allowed. This is not the point raised or considered in the order of the Tribunal or even in the appeal filed in this Court. Thus, this question cannot be allowed to be raised.

No substantial question of law arises. The appeal is dismissed.