2011 (12) TMI 750 - AT - Income Tax

Summary

Issues involved: Appeal against denial of exemption u/s 11 of the Income-tax Act, 1961.

Summary:
1. The appeal was filed by the revenue against the denial of exemption u/s 11 of the Income-tax Act, 1961 by the Assessing Officer (AO) based on the grounds that the trust was created for the benefit of a particular religious community or caste, contravening sec. 13(1)(b) of the Act.

2. The Commissioner of Income-tax (Appeals) allowed the assessee's case, citing previous Tribunal decisions in favor of the assessee for different assessment years, directing the AO to grant exemption u/s 11 and allow all expenses claimed by the assessee.

3. The ITAT, Delhi Bench 'C', New Delhi upheld the CIT(A)'s decision, following previous Tribunal orders confirming the assessee's entitlement to tax exemption u/s 11, despite the Department's appeal to the High Court. The Tribunal found no infirmity in the CIT(A)'s order and dismissed the revenue's appeal.

Judgment: The ITAT upheld the CIT(A)'s decision to grant exemption u/s 11 of the Act, following previous Tribunal orders in favor of the assessee and dismissing the revenue's appeal.