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Commissioner of Income-tax Vs. Govindram Saksariya Charity Trust - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtMadhya Pradesh High Court
Decided On
Case NumberMiscellaneous Civil Case Nos. 209, 210 and 211 of 1981
Judge
Reported in[1984]145ITR253(MP)
ActsIncome Tax Act, 1961 - Sections 11, 13(1), 13(3), 256(1), 256(2) and 263
AppellantCommissioner of Income-tax
RespondentGovindram Saksariya Charity Trust
Appellant AdvocateR.C. Mukati, Adv.
Respondent AdvocateK.L. Sethi, Adv.
Excerpt:
.....it cannot be said that onus shifts exclusively and heavily on him to prove his innocence. conviction of appellant is liable to be set aside. - we are satisfied that the following question of law arises out of the tribunal's order and we, therefore, direct that the tribunal shall state the case and refer it to us for determination of the said question:.....treated as exempt under section 11 of the i.t act, 1961. for the assessment year1973-74, the ito granted exemption to the assessee under section 11 of the i.t. act. the commissioner acting under section 263 of the act sent for the record and after perusal noted that the ito did not examine certain facts, which according to him disqualified the assessee, under section 13(1)(c) of the act, from earning exemption under section 11 of the act. according to the commissioner certain loans were advanced to persons who fell within the category referred to under sub-section (3) of 13 of the act. he accordingly set aside the assessment and directed the ito to examine the points mentioned in his order regarding the grant of exemption of income claimed by the assessee under section 11 of the act......
Judgment:

Shukla, J.

1. This is an application under Section 256(2) of the I.T. Act seeking a direction to the Income-tax Appellate Tribunal, Indore, to state the case and refer it for decision of certain questions stated in the application.

2. The assessee is a public charitable trust whose income has been treated as exempt under Section 11 of the I.T Act, 1961. For the assessment year1973-74, the ITO granted exemption to the assessee under Section 11 of the I.T. Act. The Commissioner acting under Section 263 of the Act sent for the record and after perusal noted that the ITO did not examine certain facts, which according to him disqualified the assessee, under Section 13(1)(c) of the Act, from earning exemption under Section 11 of the Act. According to the Commissioner certain loans were advanced to persons who fell within the category referred to under Sub-section (3) of 13 of the Act. He accordingly set aside the assessment and directed the ITO to examine the points mentioned in his order regarding the grant of exemption of income claimed by the assessee under Section 11 of the Act.

3. The assessee went in appeal before the Appellate Tribunal challenging the order passed by the Commissioner. The Appellate Tribunal observed that the ITO had examined the entire record and had granted exemption after considering all the relevant facts. The Revenue sought a reference under Section 256(1) of the Act but the Appellate Tribunal declined to make any reference.

4. We have examined the orders of the ITO and the Appellate Tribunal. We are satisfied that the following question of law arises out of the Tribunal's order and we, therefore, direct that the Tribunal shall state the case and refer it to us for determination of the said question:

' Whether, on the facts and in the circumstances of the case, and on the basis of the material available on record, the Tribunal was right in holding that the ITO had granted exemption under Section 11 to the assessee-trust after making thorough enquiries about the applicability of Section 13(1)(c) of the Income-tax Act, 1961 ?'


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