COMMISSIONER OF INCOME TAX Vs. NARAYANA CHANDRIKA TRUST

JUDGEMENT

(1.) THESE cases before us relate to the assessments made on the respondent-assessee for the assessment years 1977-78 to 1982-83. We shall state the facts in Income-tax References Nos. 253 to 256 of 1985 and apply the decision therein to the other cases, as was done by the Appellate Tribunal in the appeals before it.

(2.) THESE references are at the instance of the Revenue under Section 256(1) of the Income-tax Act, 1961 ("the Act"), with two questions raised by the assessee as well. They relate to the assessment years 1977-78 and 1979-80 for which the accounting periods are the years ending March 31 of 1977 and 1979. The question raised by the Revenue for these years reflect the scope of the dispute between the parties for the subsequent years as well, which we shall deal with later, namely, whether the assessee is entitled to the exemption under Section 10(22A) of the Act.

(3.) IN effect, the amendment was to bring the objects clause strictly in accord with Section 10(22A) of the Act and thereafter the object of the trust was only the establishment and running, etc., of hospitals. We may mention here itself that the assessee-trust has not, after its constitution, embarked on any object other than the establishment and running of a hospital, at any time, and all its funds were being utilised only for that purpose. That this fact was not in dispute has been recorded by the Tribunal in more than one place in its order in paragraphs 9.4, 9.8, 10.2 and 10.3. This has also been admitted in paragraph 4 of the enclosure to the Commissioner's application for reference.