COMMISSIONER OF INCOME TAX Vs. PADMANABHASWAMI TEMPLE TRUST

JUDGEMENT

(1.) These are references by the Income Tax Appellate Tribunal, Cochin Bench, under S.256(1) of the Income Tax Act, 1961, sent up at the instance of the Revenue. The two references arise out of an appeal filed to the Tribunal by the Revenue and a cross objection preferred to it by the assessee. Both related to the assessment year 1971-72. The assessee, Shree Padmanabhaswami Temple Trust, Trivandrum, is the charitable and religious trust. The previous year is the year ended 31-3-1971. The controversy revolves round the question whether the Trust whose objects are admittedly charitable within the meaning of S.2(15) of the Act, was entitled to the exemption conferred by S.11 of the Income Tax Act, as it stood at the relevant time. The material part of the Section as it stood at the relevant time read as follows:

(2.) The question of law referred is as follows: "Whether, on the facts and circumstances of the case, Income Tax Appellate Tribunal was justified in holding that the investments made after the expiry of the period mentioned in para 2 in Form 10 prescribed by R.17 of the Income Tax Rules, 1962, has to be considered for the purpose of S.11(2) of the Income Tax Act and therefore the income was exempt from taxation -

(3.) We answer the question of law in the affirmative, that is, in favour of the assessee and against the Revenue. There will be no order as to costs.