COMMISSIONER OF INCOME TAX Vs. PRINCESS USHA TRUST

JUDGEMENT

(1.) BY this reference under Section 256(2) of the Income-tax Act, 1961, at the instance of the Revenue, the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law for the opinion of this court, on the basis of an order passed by this court in Misc. Civil Case No. 45 of 1982 :

(2.) FACTS giving rise to this reference, as per the statement of case received, may be stated, in brief, thus : It relates to the assessment of the Princess Usha Trust, Indore, which is the assessee herein. The assessment year is 197.4-75 for the previous year ended March 31, 1974. In its return of income for this year, the assessee had claimed exemption in respect of income from Manik Bagh Palace, Indore. The Income-tax Officer, however, referred to the fact that his predecessor, in the earlier years, had discussed this issue at length and had held that the income from the above palace was taxable. He, therefore, included the annual letting value of Manik Bagh Palace amounting to Rs. 74,8-82 as income taxable in the hands of the assessee-trust.

(3.) THE learned counsel for the Revenue submitted that according to Section 10(19A) of the Income-tax Act which is reproduced below, the assessee-trust was not entitled to the exemption as no such exemption was granted to the trust as such. He, therefore, submitted that the trust not being the Ruler, the Tribunal has committed an error in holding on this point against the Department and In favour of the assessee :