The Kerala High Court has held that, “in order to decide whether the assessee is entitled to the benefit of the exemption under Section 11, it is necessary for the Tribunal to determine whether it satisfies the requirement of Section 11 (4A) of the Income Tax Act”.
The Kerala High Court bench consisting of Justice C.K.Abdul Rehim and Justice Amit Rawal made this observation in the case of The Commissioner Of Income Tax, V. St.Thomas Cathedral Church which arose out of the decision in I.T. Appeal Nos.730, 731, 261 &262 (Coch)/1994.
The moot question here was whether the income derived out of Kuri business conducted by the Charitable Trust is eligible for an exemption or not, in view of sub-section (4A) introduced to Section 11 of the Income Tax Act with effect from 01-04-1984.
The Church argued that the pursuant to the remand made by the Hon’ble Supreme Court in the matter of Commissioner of Income Tax V. Dharmodayam Co. (1997) 225 ITR 686 the Income Tax Appellate Tribunal, Cochin Bench had reconsidered the matter and allowed the exemptions. Hence it was submitted that the reference needs to be answered in favour of the assessee.
The Revenue 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, in order to hold whether the present assessee would also satisfy the conditions stipulated under Section 11(4A).
The Court, without answering the questions of law referred, remitted the appeals filed by The Commissioner Of Income Tax for fresh consideration and disposal by the Appellate Tribunal on the basis of the decision rendered by the Hon’ble Supreme Court in Commissioner of Income Tax V. Dharmodayam Co. and another (2001) 248 ITR 816.
Subscribe Taxscan Premium to view the Judgment
