COMMISSIONER OF INCOME TAX Vs. KAMALA TOWN TRUST

JUDGEMENT

(1.) THIS reference under Section 256(1) of the Income-tax Act, 1961, has been made by the Appellate Tribunal at the instance of the Commissioner of Income-tax, Kanpur, and the following questions have been referred for the opinion of this court :

(2.) THE assessee is a trust which derives income from property, interest and share income from a firm, Messrs. J.K., Calcutta. It had claimed exemption under Section 11(1)(a) of the Income-tax Act, 1961. THE Income-tax Officer did not allow the exemption claimed by the assessee. THErefore, the assessee went in appeal and the Appellate Assistant Commissioner held through his order dated September 8, 1972, that the assessee was a charitable trust. THErefore, the provisions of Section 11(1)(a) of the Income-tax Act, 1961, were attracted subject to the conditions mentioned therein.

(3.) THEREAFTER, the Income-tax Officer, through his order dated February 7, 1976, redetermined the taxable income of the assessee and added the share income from Messrs. J.K., Calcutta, on the ground that though the income was subject to attachment it was never paid to the Department. Therefore, the claim of the assessee in this regard did not find favour with the Income-tax Officer.