2019 (12) TMI 579

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..... rmodayam Co. [ 2000 (11) TMI 10 - SC ORDER] the Tribunal had ultimately found the issue in favour of the assessee therein. But question as to whether a similar situation prevails in the instant case which would satisfy the different conditions stipulated under sub-section (4A), is a matter which requires examination. Since some of the reference cases are of the year 2005, we do not think it appropriate to dismiss them on the basis of the litigation policy of the Government. Instead we leave it open to the respondent to take up such contention before the Tribunal, at the time when the matter is considered afresh. Instead of specifically answering question of law referred, we think it only appropriate to remit the income tax appeals for f .....

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..... ether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the interest claimed cannot be taxed in the hands of the assessee trust as it is exempt from taxation? 2. The issue to be decided is, whether the income derived out of Kuri business conducted by the Charitable Trust is eligible for exemption or not, in view of sub-section (4A) introduced to Section 11 of the Income Tax Act with effect from 01-04-1984. A Division Bench of this court in Commissioner of Income Tax V. Dharmodayam Co. (1997) 225 ITR 686 held that, if the Kuri business is held in trust, the income therefrom would not be governed by sub-section (4A) as has been held by the hon'ble Supreme Court in CIT V. Dharmodayam Co. .....

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..... be answered in favour of the assessee. 4. Per contra, Sri. P.K. Ravindranatha Menon, Senior Standing Counsel for Income Tax contended that, the order passed by the Tribunal in the matter of Dharmodayam Co., cannot as such be taken as a precedent applicable in the case of the present assessee, because it requires evaluation of facts and circumstances, inorder to hold whether the present assessee would also satisfy the conditions stipulated under Section 11 (4A). 5. Sri. Anil D. Nair, learned counsel for the respondent had raised a preliminary objection that the amount involved in the reference cases are far below the limit contained in the litigation policy declared by the Govt. of India, through circulars issued by the C .....

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