SUGUNA CHARITABLE TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") is directed against the order of the Income-tax Appellate Tribunal, "D" Bench, Chennai, dated 29.06.2016, passed in I.T.A.No.2172/Mds/2014 for the assessment year 2010-11.

(2.) The appeal is entertained on the following substantial questions of law:- "1.Whether the Appellate Tribunal is right in law inholding that the income arising to the appellant Trust from 'Suguna Auditorium Hall' is from a business activity, when the dominant activity and purpose of the Trust is education, so as to attract the Proviso to Section 2(15) of the Income Tax Act, 1961? 2.Whether the Appellate Tribunal is right in law in holding that the Auditorium income is exigible to tax when such income is meant to sub serve and augment the resources for the educational activity of the appellant Trust?

(3.) Whether the Appellate Tribunal is right in law in holding that the income from the Auditorium is liable to tax when the Auditorium receipts are less than twenty per cent of the aggregate receipts of the appellant trust as envisaged in clause (ii) of the Proviso to Section 2(15) of the Act?