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TMI Blog2010 (2) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... te income from business. On further appeal, the Tribunal confirmed the order of the Commissioner of Income-tax (Appeals) apparently following the above judgment of this court. Held that- There is absolutely no discussion about the application of the provision to the trust in question by the Commissioner of Income-tax (Appeals) as well as the Tribunal. In our opinion, the entire issue should be reconsidered by the Commissioner of Income-tax (Appeals) as to whether the trust in question is entitled to the exemption in respect of the assessment year by applying the relevant provisions. X X X X Extracts X X X X X X X X Extracts X X X X ..... araswatha Sabhareported in [2000] 245 ITR 242. That was a case where this court was considering the question as to whether the letting out of property as marriage hail by a charitable trust for earning income is a business income or property income and whether such trust is entitled to the benefit of exemption under section 11 of the Act in respect of such income. Of course, the Division Bench held that the sabha lets out its hail to various persons and merely by letting out its hail the assessee has not lost his claim to exemption. In fact, this judgment has been followed by this court in various appeals. To quote a few, we may refer to T. C. No. 235 of 1997 dated November 12, 2001 (Director of Wealth-tax (Exemptions) v. A. V. M. Charities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books or publication of books or is of a kind notified by the Central Government in this behalf in the Official Gazette; or (b) the business is carried on by an institution wholly for charitable purposes and the work in connection with the business is mainly carried on by the beneficiaries of the institution and separate books of account are maintained by the trust or institution in respect of such business." 7. The consideration for entitlement of exemption under section 11 (4A), the provision that stood prior to the insertion of the new provision of section 11 (4A) to section 11 with effect from April 1, 1992, shows for the entitlement of exemption income being profits and gains of business and the business is carried on by a trust who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and separate books of account are maintained by such trust or institution in respect of such business. The consideration for entitlement of the provision is entirely different with reference to newly inserted provision. 11. There is absolutely no discussion about the application of the provision to the trust in question by the Commissioner of Income-tax (Appeals) as well as the Tribunal. In our opinion, the entire issue should be reconsidered by the Commissioner of Income-tax (Appeals) as to whether the trust in question is entitled to the exemption in respect of the assessment year by applying the relevant provisions. In that case, if the Commissioner of Income-tax (Appeals) comes to the conclusion that the income is a property income, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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