2006 (12) TMI 75

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..... cts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled for exemption under section 10(22) of the Income Tax Act ? 2. When the assessee has utilised the funds of the Trust for purposes that are not in consonance with the objects of the Trust, is not the assessing officer right in denying exemption to the assessee under section 10(22) of the Income Tax Act ?" 2. The Revenue is the appellant. The relevant assessment years are 1996-97 and 1997-98. The assessee is a public charitable trust, which runs three educational institutions and a medical centre. They claimed exemption under Section 10(22) of the Income Tax Act for three assessment years, viz., 1995-96, 1996-97 and 1997-98. For the asse .....

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..... o exemption under Section 10(22) of the Act since educational institutions are entitled for the benefit under Sections 10(22), 10(22A) and 10(23C) of the Act and for the said purpose, it is not necessary to consider the assessee's claim for deduction under Section 11 of the Act. Against the said order of the Commissioner, the Revenue went on appeal and the Tribunal, by order dated March 8, 2006, confirmed the order of the Commissioner taking note of its earlier order dated January 5, 2004 in the assessee's own case for the assessment year 1998-99, wherein it was held that since the assessee trust had been maintaining separate statement of accounts for educational and charitable activities and were not mingled with both activities and as suc .....

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..... f investment of funds, such institutions are not required to invest their funds in the modes specified under section 11(5) of the Income-tax Act. This clarification will not apply to the institutions seeking exemption under section 11 of the Act." (sd.) ………………………………. Under Secretary to the Government of India." 5. Since the substantial questions of law raised in these appeals are centrifuged on the point whether the assessee is entitled for the benefit of Section 10(22) of the Act in view of the alleged violation of Section 11(5) read with 13(1)(d) of the Act, in view of the .....

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