COMMISSIONER OF INCOME TAX Vs. JYOTI PRABHA SOCIETY

JUDGEMENT

(1.) This is an appeal against the judgment and order -dated 21.02.2005, passed by the Income Tax Appellate Tribunal, (Delhi Bench 4F" New Delhi) in ITA No.4178 /Del/2002.

(2.) The substantial questions of law raised in the appeal are as follows:

(3.) Brief facts of the case giving rise to the present appeal are that the assessee is an Association of Persons and runs a school at Nainital. The assessee let out the number of properties to various educational institutions, boarding houses etc. and they are being used by the tenant institutions as such. The assessee, derives the rental income. The assessee claimed exemption Under Sec. 11 of the I.T. Act on the ground that its activities were of charitable nature insomuch so that its sole object was to promote education. However, the Assessing Officer was of the view that since the assessee had let out its properties to other educational institutions, the assessee itself could not be said to be engaged in educational activities. Therefore, the claim of exemption Under Sec. 11 of the I.T. Act was denied to the assessee. Being aggrieved, the assessee went in appeal before Commissioner of Income Tax (Appeals) who also held that the activity of letting out its properties to educational institutions by itself would not constitute any charity and accordingly the appeal preferred by the assessee was dismissed. The assessee thereafter preferred second appeal before Income Tax Appellate Tribunal against the orders passed by the Commissioner (Appeals) who allowed the appeal of the assessee and set aside the orders passed by the Commissioner (Appeals) and Assessing Officer. Feeling aggrieved, the Department has come up in appeal before this Court.