9911796707
TMI Blog1992 (8) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... with the object of establishing hospitals or other institutions for the reception and treatment of persons suffering from illness or mental defectiveness or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation existing solely for philanthropic purposes and not for the purposes of profit. The authors of the trust are Sri K.R. Rajappan and his wife Smt. C.K. Nalini. The assessee trust filed returns for the above two years showing nil income. But, the ITO noticed that the assessee was a partner in M/s Beena Enterprises, Coimbatore, engaged in the manufacture and distribution of `Chandrika' soaps. The assessee was doing the business as a partner in the above firm and the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for in-patients. It had also started the construction of a big hospital. The trust was a partner in the firm M/s Beena Enterprises since 1st April, 1980 and this was discontinued on 31st March, 1982. The said firm was the distributor of Chandrika soap. The trust had got 12.5 per cent share in the said firm. Similarly, Sree Narayana Chandrika Trust, another charitable institution got 30 per cent share in the firm through its managing trustee Sri C.K. Kesavan Vaidyar. Among other partners three children of the trustees got 12 per cent share from the firm. None of the trustees was holding any share in M/s Beena Enterprises. The trust was not doing any business. The trust had joined as a partner to augment the resources of the trust. The funds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar question came up for consideration of this Bench in the case of M/s Sree Narayana Chandrika Trust, which had also got 30 per cent share in the firm of M/s Beena Enterprises, in ITA Nos. 598 599 (Coch)/1983 for the asst. yrs. 1977-78 1979-80 and this Bench took the view that the assessee therein was entitled to exemption under s. 10(22A) of the IT Act. Smt. Susie B. Varghese, the learned Departmental Representative, though not giving up her contention in this case, fairly conceded that the issue involved in these appeals is squarely covered by the earlier decision of this Bench of the Tribunal in ITA No. 598 599 (Coch)/1983, dt. 8th May, 1984 in the case of M/s Sree Narayana Chandrika Trust, Irinjalakuda. In that case, the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and to cater to the needs of persons suffering from illness or treatment of persons during convalescence or requiring rehabilitation. Hence, the decision referred to above will squarely apply to the facts of this case. In view of the above, we uphold the orders of the CIT(A) and dismiss the Revenue's appeals. 6. Coming to the cross-objections of the assessee, we see that the grounds taken in them are against the findings of the ITO. We have already held that the assessee is entitled to the benefit of exemption under s. 10(22A) of the IT Act. Hence, the cross-objections of the assessee are allowed. 7. In the result, the appeals filed by the Revenue are dismissed while the cross-objections filed by the assessee are allowed. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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