9911796707
TMI Blog1983 (8) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 1963-64, it was assessed on a total income of Rs. 70,404 and the tax payable thereon was determined as Rs. 24,641. The ITO noticed that after deducting the aforesaid amount of tax, the surplus left with the assessee-company was Rs. 45,763 and that the sum of Rs. 31,250, being the dividends actually declared during the year of account, fell short of 90% of the surplus which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee preferred an appeal to the AAC reiterating the same contentions as were urged before the ITO. The AAC, however, rejected the assessee's contentions. Thereupon, the assessee preferred an appeal to the Income-tax Appellate Tribunal. The Tribunal taking note of its earlier order dated February 8, 1972, wherein the said trust had been exempted in respect of the accumulated income under s. 11(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-64 to 1965-66, in support of its view that no order under s. 104 of the Act could be made against the assessee. It is seen that the said order of the Tribunal dated February 8, 1972, was the subject-matter of a reference in this court in T.Cs. Nos. 211 and 262 of 1975 [CIT v. S.R.M.C.T.M. Tiruppani Trust [1984] 150 ITR 642]. This court relying on the decision reported in Second ITO v. M.C.T. Tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is a charitable institution as contemplated by s.11 (1) of the Act. Therefore, the earlier decision of the Tribunal and of this court holding that the trust is entitled to exemption under s. 11(2) of the Act in respect of the accumulated income can be taken as decision that the trust is a charitable institution as contemplated by s. 11 (1) of the Act, for, unless the trust comes unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1975 involves an inferential finding that the trust is a charitable institution as contemplated by s. 11 (1) of the Act, we are of the view that s. 104(2)(iii) of the Act is a bar for passing an order levying penal super tax in this case. We have, therefore, to answer the question in the affirmative and against the Revenue. There will be no order as to costs. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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