LAWS(DLH)-2000-5-107

DIRECTOR OF INCOME TAX EXEMPTION Vs. ALARIPPU

Decided On May 25, 2000
DIRECTOR OF INCOME TAX (EXEMPTION) Appellant
V/S
ALARIPPU Respondents

JUDGEMENT

(1.) Prayer for reference under Section 256(1) of the Income-tax Act, 1961 (inshort,the Act) made by the Revenue was turned down by the Income-tax Appellate Tribunal,Delhi Bench-'C' (in short, the Tribunal) and hence this application under Section256(2) of the Act.

(2.) Factual position so far as not in dispute is as follows:

(3.) Assessee is a Society registered under Section 12A(a) of the Act. The disputerelates to the assessment year 1988-89. Prior to the said assessment period, allthrough assessments were completed under Section 143(1 ) at "Nit" income. Assesseeis a voluntary group which in association with other voluntary organizations stagesplays to educate people on various social problems. During the assessment year inquestion, the assessee Society had given Rs. 50,000.00 to Mahila Haat to which thedispute relates. Application of income was held to be to the extent of Rs. 5,69,186.00as against Rs. 7,94,200/ claimed by the assessee, assessing officer held that therewas infringement in terms of Section 13(1)(d) read with Section 11 (5) of the Act, andas such benefit under Section 11 was denied. Commissioner of Income-tax (Appeals)XVI (in short CIT(A) confirmed the denial of benefit under Section 11 of the Act. Thematter was carried in Appeal to the Tribunal. Referring to the factual aspects broughton record, the Tribunal held that the expression "investment" and "deposit" has noapplication to the facts of the case and the sum of Rs. 50,000.00 was not an investmentor deposit to constitute infringement, as alleged by the Revenue. As noted at theoutset, anapplication under section 256(1) of the Act was filed, which was rejectedon the ground that no question of law arises as the issue was decided on appreciationoffacts.