2002 (7) TMI 67 - HC - Income Tax

Assessing Officer disallowed exemption to the assessee under section 11 of the Act on the solitary ground that the audit report under section 12A(b) of the Act was not furnished along with the return - Tribunal also made the following observations Even if the audit report is not taken into consideration, then in that case also it is not a case of addition, as undisputedly the corpus donations during the year were to the tune of Rs. 4,03,243.30, against which the assessee had incurred expenditure during the year at Rs. 5,01,263, which clearly establishes that expenses were more than the corpus fund received as donation during the year. I have also seen the order of the immediately preceding year, i.e., assessment year 1989-90, and found that the Assessing Officer himself allowed the exemption under section 11 to the assessee by observing that all the conditions are fulfilled by the assessee. Therefore, in view of these facts and circumstances and in view of the reasoning given by the Commissioner of Income-tax (Appeals) - The aforenoted findings are pure findings of fact and no question of law, much less a substantial question of law, arises

Summary

The High Court of Delhi allowed the appeal under section 260A of the Income-tax Act, 1961, related to the assessment year 1990-91. The court upheld the exemption under section 11 of the Act for the assessee-trust, dismissing the Revenue's appeal. The Tribunal confirmed the findings regarding the audit report and expenses exceeding corpus donations. The appeal was dismissed as no substantial question of law arose.