2013 (3) TMI 748 - HC - Income Tax

Summary

Issues involved: The judgment involves the following issues:
1. Whether the Tribunal correctly confirmed the order of CIT(A) without appreciating the fact that the assessee's income should be assessed under the principle of mutuality.
2. Whether the Tribunal correctly confirmed the order of CIT(A) regarding the assessee's entitlement to exemption under section 11 of the Income Tax Act.

Issue 1: Assessment under principle of mutuality
The Court considered whether the Tribunal was correct in confirming the order of CIT(A) without appreciating that if the assessee is a mutual concern, the income should be assessed under the principle of mutuality. The Court noted that the assessee was registered under section 12A of the Income Tax Act as a charitable institution. However, it was argued that if the assessee/institution is a mutual concern, the income should be assessed differently.

Issue 2: Exemption under section 11
The Court examined whether the Tribunal correctly upheld the order of CIT(A) stating that the assessee is entitled to exemption under section 11 of the Income Tax Act. The parties acknowledged that similar questions were raised by the revenue in a previous case before the Court. The Court referred to its previous order where it did not entertain the appeal filed by the revenue. Consequently, the Court found no reason to entertain the current appeals and dismissed them without costs.

This judgment addressed the issues of assessment under the principle of mutuality and the entitlement to exemption under section 11 of the Income Tax Act. The Court's decision was based on the previous order and the lack of grounds to entertain the appeals.