2002 PLP 1293 (PTD)
COMMISSIONER OF INCOME-TAX Versus JANMABHOOMI PRESS TRUST
| Citation | 2002 PLP 1293 (PTD) |
| Forum / Court | 242 I T R 709 |
| Bench Members | V.K. Singhal and T.N. Vadlinayagam, JJ |
| Parties | COMMISSIONER OF INCOME-TAX Versus JANMABHOOMI PRESS TRUST |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 2002 PLP 1293 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2002 PLP 1293 (PTD)?
The case was heard and decided by the 242 I T R 709 bench comprising: V.K. Singhal and T.N. Vadlinayagam, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2002 PLP 1293 (PTD) (COMMISSIONER OF INCOME-TAX Versus JANMABHOOMI PRESS TRUST). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Charitable purposes
Borrowed funds utilised in construction of building which would augment income of trust
Repayment of debt amounted to application of income for charitable purposes
Indian Income Tax Act, 1961, S.11. Held, that the Tribunal was right in holding that the repayment of debt incurred by the assessee for the construction of the commercial building taken up by .the assessee for the purpose of augmenting its funds, should be treated as "application" of the income of the assessee trust for charitable purposes. CIT v. Janmabhumi Press Trust (2000) 242 ITR 457 (Kar.) fol. CIT v. St. George Forana Church (1988) 170 ITR 62 (Ker.) and CIT v. Kannika Prameswazi Devasthanam and Charities (1982) 133 ITR 779 (Mad.) ref. E.R. Indrakumar for the Commissioner. S. Ganesh Rao for the Assessee.
Judgment & Decree
V.K. SINGHAL, J.‑‑‑The Income‑tax Appellate Tribunal has referred the following question of law arising out of its order, dated June 16, 1992, for the assessment year 1983‑84. "Whether, on the` facts and in the circumstances of the case, the Tribunal is right in holdi4g that the repayment of debt incurred by the assessee for the construction of the commercial building taken up by the assessee for the purpose of augmenting its funds, should be treated as `application' of the income of the assessee trust for charitable purposes?" The assessee is a trust. While framing the assessment order for the assessment year 1983‑84, the Assessing Officer did not treat the repayment of loan taken by the assessee for the purpose of construction of a commercial complex as income applied for charitable purposes. In an appeal filed by the assessee, the Deputy Commissioner of Income‑tax (Appeals) directed the Assessing Officer to allow the assessee's claim. Against the order of the Deputy Commissioner of Income‑tax (Appeals), the Department appealed before the Income‑tax Appellate Tribunal. The controversy in the present matter is covered by the decision given in I.T.R.C Nos. 100‑102 of 1993, dated August 9, 1995 (CIT v. Trust (2000) 242 ITR 457 (Kar.)) wherein it was observed (page 458): "It is plain that when the assessee is a trust entitled to benefit under section 11 of the Income‑tax Act, the only question that arises for consideration is whether that income or the accumulated income thereof is applied for charitable purpose. If investments have been made in the construction of a building which in turn would augment its income, it should also be held that the application of the funds is for the purpose of the trust. On this principle, we do not think there can be any quarrel. WE are fortified in our view by the decision of the Kerala High Court in CIT v. St. George Forana Church (1988) 170 ITR 62, which in turn relied upon a decision of the Madras High Court in CIT v. Kahnika Parameswari Devasthan and Chanaties (1982)
133. ITR 779. " In view of the above observation, the reference is answered in favour of the assessee and against the Revenue and it is held that the Tribunal is right in holding that the repayment of debt incurred by the assessee for the construction of the commercial building taken up by the assessee for the purpose of augmenting its funds, should be treated as "application" of the income of the assessee trust for charitable purposes. M.B.A./740/FC Reference answered.