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TMI Blog2013 (2) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee for the accounting year relevant to the assessment year 1977-78 was not exempt under section 11 of the Act keeping in view Section 13(1)(bb) of the Act?" 2. Briefly stated the facts giving rise to the present Reference are as follows: The Reference relates to the Assessment Year 1977-78. The assessee-opposite party was assessed in the status of 'Association of Persons'. The Income-tax Officer after going through the aims and objects of the assessee-society as are clear from the Memorandum of Association of the assessee, has for the reasons stated in the assessment order in the case of the assessee for Assessment Year 1974-75, which was followed in the subsequent years, held that the aims and objects of the Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n". He also held that the assessee was carrying on the activity for profit by carrying on the business of general insurance agency. On the premises stated hereinbefore, the ITO held that the assessee-trust was hit by section 13(1)(bb) of the Act. The assessee was, therefore, not entitled to the exemption under Section 11 of the Act. 4. Aggrieved by the said assessment, the assessee brought the mater by way of appeal before the CIT(Appeals)-VIII, New Delhi, who has agreed with the ITO that the assessee as in the past carried on the insurance agency business and the other main object of the assessee society was of general public utility. The activity for profit in the shape of the said business would come in the way of granting exemption to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia, Department of Insurance as an insurance agent under Part II of the Insurance Act, 1938 for general insurance business only. It had worked as insurance agent and had applied the income in charitable activities. The Tribunal has held that the insurance business is wholly held in trust and outside the purview of section 13(1)(bb) of the Act. The Tribunal has followed decision of this Court in the case of this this very assessee as also the earlier orders of the Tribunal in the matter. 8. In the case of M/s. Radhasoami Satsang, Agra vs. Commissioner of Income Tax, 1992 UPTC 96, the Apex Court has held that strictly speaking res judicata does not apply to income tax proceedings as each assessment year being a unit, what is decided in one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice under Section 148 of the Act issued for the Assessment Year 1960-61 was under challenge. Thus, we are not inclined to take a different view and are of the considered opinion that the dominant object of the assessee-society was for the charitable purpose as defined in Section 250 of the Act. The question of applicability of Section 13(1)(bb) of the Act to the facts of the case would not arise for the reason that the Tribunal has found that the business of insurance was carried under trust for carrying on the primary purpose of charitable activities in accordance with the aims and objects of the Trust. Thus, Section 11 was applied and it cannot be excluded. 11. In view of the foregoing discussion, we answer the question referred to us i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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