COMMISSIONER OF INCOME TAX Vs. BHILAI MAHILA SAMAJ

JUDGEMENT

(1.) THIS is an income-tax reference at the instance of the Revenue under Section 256(1) of the Income-tax Act, 1961. The following questions of law have been referred by the Tribunal for answer by this court ;

(2.) THE assessee, Bhilai Mahila Samaj, is a trust formed with the object of looking after the family members of the employees of the Bhilai Steel Plant who owing to accident have either expired or have been rendered invalid. THE original assessment for the year under consideration was completed on a total income of Rs. 90,990. On appeal before the Appellate Assistant Commissioner, it was held that the assessee was a charitable trust and hence entitled to exemption under Section 11 of the Act. THEreafter, the Income-tax Officer initiated proceedings under Section 147(b) of the Act applying the provisions of Section 13(1)(bb) of the Act, and brought to charge the said amount of Rs. 90,990. THE Appellate Assistant Commissioner allowed the assessee's appeal holding that the provisions of Section 13(1)(bb) of the Act are not applicable. THE Department moved the Tribunal and the Tribunal held that the issue involved was not res integra because it was already, decided in favour of the assessee, vide its order dated January 10, 1985, for the assessment year 1979-80. THErefore, the Revenue approached the Tribunal for making a reference to this court and hence the aforesaid questions of law have been referred by the Tribunal for answer by this court. We have heard learned counsel for the parties and perused the record.

(3.) IN the result, both the questions are answered in favour of the assessee and against the Revenue.