COMMISSIONER OF INCOME TAX Vs. MANAV MANGAL SOCIETY

JUDGEMENT

(1.) THE Revenue has preferred this appeal under s. 260A of the IT Act, 1961 (for short, "the Act") against the order of the 2007 for asst. yr. 2003 -04, proposing to raise the following questions of law :

(2.) THE assessee is running a school and claimed exemption under s. 11 of the Act in respect of its income. The AO rejected the claim on the ground that the assessee had not applied 85 per cent of the profits for the purpose of the society, as required under s. 11 (4A) r/w s. 11(2) of the Act. This view was reversed by the CIT(A) taking into account the fact that the assessee had spent the amount equal to more than 85 per cent. The relevant observations are as under :

(3.) WE have heard learned counsel for the Revenue.