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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 1987-88.
Briefly stated the facts giving rise to the present reference are as follows:-
The assessee is a trust and had shown Income from property. However, 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 trust was denied exemption tinder section 11 of the income tax Act.
Feeling aggrieved by the order of the Assessing Officer, the assessee went in appeal and the learned Deputy Commissioner of income tax (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 following its earlier orders in I.T. Appeal Nos. 847 and 848 (Alld.)/1986 dated 17.12.1987 and I.T. Appeal Nos. 344 to 346 (Alld.)/89 dated 31.10.1991, in the assessee''s own case, dismissed the appeal 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. 187 of 19859 decided on 19.09.2006 which is inter parties and related to the earlier assessment years 1980-81 and 1981-82 wherein this Court has Answered similar question in favour of the assessee and against the Revenue. The Court after 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.