2012 (9) TMI 1095

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..... nterfere with the impugned order in this aspect. - appeal dismissed - exemption allowed - decided against Revenue.
S. Ravindra Bhat And R. V. Easwar, JJ. For the Appellant : Mr. Abhishek Maratha, sr. standing counsel with Ms. Anshul Sharma, Adv. For the Respondent : Mr. V P Gupta, Adv. ORDER Issue notice. 2. Mr. V P Gupta, Adv. accepts notice on behalf of the respondent. 3. We have heard counsel for the parties. Revenue claims to be aggrieved by the order dated 10.10.2011 of the Income Tax Appellate Tribunal (Tribunal, for short) in ITA No.3795/Del/2011. It urges that the impugned order holding that assessee is entitled to exemption under Section 11 is erroneous. The assessee trust claimed and was granted exemption. Its main object .....

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..... aritable purpose. 5. Counsel for the assessee relied upon the previous orders of the ITAT, particularly common order dated 22nd April, 1999. Reliance was also placed upon the judgment of this Court in CIT Vs. M/s Indian National Theatre Trust, New Delhi ITR 134/1986, which had affirmed that order on 13.11.2007. 6. This Court has considered the submissions. The assessee had in its return before the Assessing Officer stated as follows : " 'As per the aforesaid letter your goodself have observed that income and expenditure of our Trust are mainly related to property held by us at 4, Safdar Hashmi Marg, New Delhi, expenditure incurred is not related to charitable activities except donation paid to certain parties. Your goodself had observed .....

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..... t out of the said rental income. Further, our trust also supports charitable activities being carried by other on charitable institutions having objects consistent with our object by way of making donations to them. The aforesaid position is being there for number of years and charitable activities of our trust have always been accepted in the past." 7. The Assessing Officer however rejected the contention stating that the assessee used to charge market rates while hiring or letting out auditorium. We discern no material to warrant that conclusion. Apart from hiring of the auditorium, the assessee received rents on account of letting out some portion of its premises to M/s Benett and Coleman. That cannot be termed as unreasonable. In view .....

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