COMMISSIONER OF INCOME TAX Vs. DHARMODAYAM CO

JUDGEMENT

(1.) The assessment years here involved are 1984-85 and 1985-86. Until the introduction of sec. 11(4A) into the Income-tax Act, 1961, on 1.4.1984, the case of the assessee was governed by the decision of this Court in its own case of CIT V/s. Dharmodayam Co., 1977 109 ITR 527. Sec. 11(4A) has introduced conditions in the application of sub-sec. (1), (2), (3) and (3A) of sec. 11. It does not appear that the Tribunal has applied its mind to these conditions and given findings of fact as to whether or not they are satisfied. Nor has the High Court given due consideration to this aspect. To be able to decide whether the assessee is entitled to the benefit of the exemption u/s. 11, it is necessary for the Tribunal to determine whether it satisfies the requirements of sec. 11(4A).

(2.) Accordingly, the orders of the High Court under challenge and the orders of the Tribunal from which the reference was made are set aside and the matter - IT Appeal Nos. 681 (Coch.) of 1987 and 264 (Coch.) of 1989 are restored to the file of the Tribunal, Cochin, to be considered afresh in the light of what has been stated above.

(3.) The appeals are allowed accordingly.