COMMISSIONER OF INCOME TAX Vs. JANAKIAMMAL AYYANDAR TRUST

JUDGEMENT

(1.) THESE appeals are directed against the orders dated 23. 4. 2004 and 14. 6. 2001 of the Income Tax Appellate Tribunal Madras 'a' Bench made in I. T. A. Nos. 1972/mds/1997 and 316/mds/1997, respectively, with reference to the assessment years 1994-95 and 1993-94.

(2.) THE brief facts, relevant for the disposal of these appeals are as under: the assessee/trust claimed exemption under Section 11 of the Income Tax Act (for brevity "the Act") stating that since it has applied more than 75% of its income for charitable and educational purposes, the income is eligible for exemption under Section 11 of the Act. The Assessing Officer, finding that the activities of the assessee in running business of paper caps is hit by Section 11 (4a) of the Act, held that the trust is not entitled to exemption under Section 11 of the Act.

(3.) AS per Section 11 (4a) of the Act, unless the business is incidental to the attainment of the objectives of the trust viz. , for charitable and religious purposes, the exemption granted under Sections 11 (1), 11 (2), 11 (3) and 11 (3a) shall not be applied in relation to any income of the said Trust or institution.