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Judgment
The income tax Appellate Tribunal, Allahabad has referred the following question of law u/s 256(1) of the income tax Act, 1961 for opinion of this Court:- Whether on the facts and in the circumstances of the case, the income tax Appellate Tribunal was Justified In holding that the Trust was not liable to tax u/s 11 and it was not hit by section 13 of the income tax Act, 1961?
The reference relates to the year 1984-85 to 1986-87.
Briefly stated the facts giving rise to the present reference are as follows:-
The assessee is a trust and had shown Income from property. It was found by the Assessing Officer that the Income of the trust was not applied to charitable purposes within the meaning of section 13 of the income tax Act. Since the provisions of section 13 were not fulfilled, the assessee firm was denied exemption u/s 11 of the income tax Act.
Feeling aggrieved by the order of the Assessing Officer, the assessee went in appeal and the learned Deputy C.I.T. (Appeals) following the order of the Appellate Tribunal for the assessment years 1980-81 and 1981-82 allowed the appeals filed by the assessee.
The Department came up in appeal before the Tribunal and the Tribunal after following its order in I.T. Appeal Nos. 847 and 848 (Alld) of 1986 decided on 17.12. 1987, in the case of M/s. Shadiram Ganga Prasad Charitable Trust, Kanpur, dismissed the appeals filed by the department.
It is agreed between the learned counsel for the parties that similar controversy came up for consideration before this Court in ITR No. 68 of 1997 decided on 30.11.2003 which is Inter parties and related to the earlier assessment year. The Court after respectfully following its earlier decision has answered the question in favour of the assessee and against the Revenue.
In view of the aforesaid discussion we answer the question in the affirmative i.e., in favour of the assessee and against the Revenue. There shall be no orders as to costs.