COMMISSIONER OF INCOME TAX VIRUDHUNAGAR Vs. RAO BAGHADUR ADK DHARMARAJA EDUCATIONAL CHARITY TRUST RAJAPALAYAM

JUDGEMENT

(1.) THE Revenue has preferred the above tax case appeal against the order of the Income-tax Appellate Tribunal dated 16.4.2003 in ITA No.769/Mds/2000 for the assessment year 1995-96 raising the following substantial question of law for consideration:

(2.) THE brief facts, necessary for the disposal of the appeal are, the assessee, a trust, claimed exemption of income from properties and lease rentals under sections 10(22) and 11 of the Income-tax Act, 1961 which was disallowed by the Assessing Officer. On appeal, the Commissioner of Income-tax (Appeals) held that the income from properties let out is not a business income, and allowed the exemption. THE Appellate Tribunal, on appeal, held that the activities of the assessee cannot be treated as its business activities and confirmed the order of the Commissioner of Income-tax (Appeals). Hence, the appeal by the Revenue, raising the substantial question of law referred to above.

(3.) THIS Court in C.I.T. v. K.Girls Schools Managing Board (245 ITR 170) held that the question of eligibility to exemption under section 10(22) of the Act has to be decided with reference to the objects of the society and if the trust, in order to attain its main objects, conducts some business for raising the funds, the claim for exemption under section 10(22) of the Act would still be available to the trust.