COMMISSIONER OF INCOME TAX, Vs. COCHIN PORT TRUST

JUDGEMENT

(1.) The following questions arise from the order of the Income Tax Appellate Tribunal:-

(2.) On facts, suffice it to notice that the assesses had been carrying on activities of a Port having been notified under the Indian Ports Act, 1908 by virtue of notification Nos.SRO 57, 58 and 59 dated 08.01.1952 issued by the Ministry of Transport, Government of India. Like other Ports in India, before 13.11.2002, the assesses herein was registered as a 'local authority' as defined under Sec. 3(31) of the General Clauses Act, 1897. By virtue of such registration prior to 2002, the assesses was also availing exemption from income-tax as a 'local authority' under Sec. 10(20) of the IT Act. When an Explanation was added under Sec. 10(20) by which 'local authority' was defined, the restricted meaning; took the assesses along with some others out of the definition of 'local authority' and hence, was then on exigible to tax under the IT Act.

(3.) The assesses then made an application to the Commissioner of Income Tax to register it as a charitable institution as defined under Sec. 2(15) of the IT Act. This was for the purpose of claiming exemption as a trust established for charitable purposes in respect of income derived from their properties/businesses as permissible under Sec. 11 of the