1999 PLP 87 (PTD)
COMMISSIONER OF INCOME-TAX Versus PALGHAT SHADI MAHAL TRUST
| Citation | 1999 PLP 87 (PTD) |
| Forum / Court | 225 1 T R 45 |
| Bench Members | V. V. Kamat and G. Sivarajan, JJ |
| Parties | COMMISSIONER OF INCOME-TAX Versus PALGHAT SHADI MAHAL TRUST |
| Primary Law | Income-tax |
Q1: What are the key laws and sections cited in 1999 PLP 87 (PTD)?
This judgment primarily cites: Income-tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1999 PLP 87 (PTD)?
The case was heard and decided by the 225 1 T R 45 bench comprising: V. V. Kamat and G. Sivarajan, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1999 PLP 87 (PTD) (COMMISSIONER OF INCOME-TAX Versus PALGHAT SHADI MAHAL TRUST). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- P.K.R. Menon for Petitioner.
- K.T. Mayankutty Mather for Respondent.
- Being aggrieved by the said order of the Tribunal the Department has filed this original petition. At the time of hearing of this original petition, learned senior counsel for the Department submitted before us that this Court in O.P. Nos. 13682, 15676 and 15679 of 1992 by judgment, dated October 6, 1994, directed reference of the very same question for consideration in the case of the assessee for the earlier assessment years.
Headnotes / Summary
Assessee applying its income as provided under S.11
Whether assessee entitled to exemption
Question of law arises
Indian Income Tax Act, 1961, Ss. l l &
256. The assessee, a charitable trust, claimed exemption under section 11 of the Income Tax Act, 1961, but the Income-tax Officer assessed its income to tax. On appeal, the Commissioner of Income-tax (Appeals) allowed exemption. The Tribunal held, following its earlier decision in the assessee's own case, that the assessee was entitled to exemption under section
11. However, the Tribunal remitted the matter to the Income-tax Officer to consider whether the assessee had applied its income in accordance with section 11 of the Act. The Revenue's application for reference was rejected. On a petition under section 256(2) of the Act Held, that the question, whether the assessee, a charitable institution, was entitled to exemption under section 11 even if it had applied or accumulated its income as provided under the provisions of the Act, arose out of the order of the Tribunal.
Judgment & Decree
G. SIVARAJAN, J.
This is a petition under section 256(2) of the Income Tax Act, 1961, for a direction to the Income-tax Appellate Tribunal to refer the following question for decision by this Court: "Whether, on the facts and in the circumstances of the case, is the assessee a charitable institution entitled to exemption under section 11 even if the assessee had applied or accumulated its income as provided under the provisions of the Income Tax Act?" The assessment year, concerned is 1986-87. The assessee is a charitable trust. According to the assessee, it is entitled to exemption under section 11 of the Income Tax Act, 1961. The Income-tax Officer denied the exemption and assessed the income to tax. On appeal by the assessee, the Commissioner of Income-tax (Appeals), Cochin, allowed the appeal relying on the decision of the Income-tax Appellate Tribunal, Cochin Bench, in I.T.As. Nos.858/Coch. of 1983 and 859/Coch. of 1983 in the case of the assessee itself for the assessment years 1977-78 to 1979-80. On appeal by the Department, the Income-tax Appellate Tribunal following its earlier decision held that the assessee is entitled to exemption under section 11 of the Income Tax Act for the years under consideration. However, since, according to the Tribunal, the Commissioner of Income-tax (Appeals) did not consider the question as to whether the assessee has satisfied all the conditions enumerated under section 11, the order of the Commissioner of Income-tax (Appeals) was set aside and the matter was remitted back to the Income-tax Officer with a direction to consider as to whether the assessee has applied the income as provided under section 11 of the Act. Against the said order of the Income tax Appellant Tribunal, the Department sought reference of the question set out in paragraph 1 of the judgment by filing a petition under section 256(1) of the Act. The Appellate Tribunal declined reference, as according to them, the findings in the appeal are based on appreciation of materials on record and, therefore, no question of law can be said to arise out of the said order. Being aggrieved by the said order of the Tribunal the Department has filed this original petition. At the time of hearing of this original petition, learned senior counsel for the Department submitted before us that this Court in O.P. Nos. 13682, 15676 and 15679 of 1992 by judgment, dated October 6, 1994, directed reference of the very same question for consideration in the case of the assessee for the earlier assessment years. In view of the fact that this Court has referred the very same question in the case of the assessee arising under the very same circumstances, we are of the view that the question sought to be referred at the instance of the Department arises out of the appellate order of the income-tax Appellate Tribunal and we accordingly direct the Tribunal to state a case and refere the question specified in paragraph 1 of the judgment of decision by this Court. Communicate a copy of this judgment under the seal of this Court and the signature of the Registrar shall be sent to the income-tax Appellate Tribunal, Cochin Bench, for information and compliance. M.B.A./1650/FC Order accordingly.