SREENARAYANA CHANDRIKA TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference although three questions are formulated by the Tribunal, learned counsel for the assessee made submissions with regard to only one of them which is as follows :

(2.) LEARNED counsel, in his characteristic fairness, with regard to questions Nos. 2 and 3 expressed his inability with regard to the consistent findings in regard thereto, and it is true that these questions wholly depend on such consistent findings, making it unnecessary to deal with them within the jacket of this reference proceeding.

(3.) FURTHER observation is made that the audit report filed in Form No. 10-B does not contain the correct information as required therein. The Income-tax Officer emphasised the fact that close relationship of the trustees and the partners of the firm in question are not found revealed in the audit report, in which case the Department would have been more than slow in resorting to the provision relating to exemption under Section 11 of the Act. It is further emphasised that the grant of exemption under Section 11 emerged only through the strength of the audit report.