COMMISSIONER OF INCOME-TAX vs. DARUL ULLAIM HASANIA

PDF · subscribers
ITR/69/1997HC GujaratGJHC24020233199730 August 2006Author: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE R.S.GARG3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the assessee is entitled to exemption under Section 11 of the Income Tax Act. The Court referred to its earlier judgment in ITR No. 234 of 1995 (CIT vs. Chandra Charitable Trust, decided on 31.07.2006) and its reliance on the judgment of the same Court in CIT vs. Barkate Safiyah Society (213 ITR 492). The Court observed that if a trust can be addressed as a 'Charitable Religious Trust', then Section 13(1)(b) would not be applicable. Since the facts of the present cases were identical to the earlier decided matters, the Court decided both references against the interests of the Revenue. The references were disposed of accordingly, with no costs awarded.

What were the facts?

This judgment concerns two Income Tax References (ITR Nos. 69/1997 and 116/1997) before the High Court of Gujarat. The assessee in both matters is Darul Ullam Hasamia. The references arise from orders of the Income Tax Appellate Tribunal (ITAT) Ahmedabad Bench. ITR No. 69/1997 pertains to Assessment Years 1982-83 to 1984-85 and relates to Income Tax Appeal Nos. 2862 to 2864/Ahd/1988. ITR No. 116/1997 pertains to Assessment Years 1985-86 and 1986-87 and relates to Income Tax Appeal Nos. 1363 and 1363A/Ahd/1992. The core issue revolves around the assessee's entitlement to exemption under Section 11 of the Income Tax Act, 1961.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the assessee is entitled to exemption under Section 11 of the Income Tax Act? (Question of law) 2. Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(Appeals) directing the Assessing Officer to grant exemption under Section 11 to the assessee trust though the trust is meant for the benefit of a particular religious community? (Question of mixed law and fact) Assessee's contentions: The judgment does not record specific contentions made by the assessee. The questions posed for consideration imply the assessee is seeking exemption under Section 11. Revenue's contentions: The revenue's position is implied by the questions referred, which question the entitlement to exemption under Section 11, particularly when the trust is for the benefit of a particular religious community. The revenue likely argued that such a trust would not qualify for exemption under Section 11, possibly due to the provisions of Section 13(1)(b).

Which sections of the Income-tax Act were involved?

Section 11,Section 13(1)(b)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
ITR/69/1997 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No. 69 of 1997 With INCOME TAX REFERENCE No. 116 of 1997 For Approval and Signature:  HONOURABLE MR.JUSTICE R.S.GARG  HONOURABLE MR.JUSTICE M.R. SHAH  =========================================================  1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? =========================================================  COMMISSIONER OF INCOME-TAX - Applicant(s) Versus DARUL ULLAIM HASANIA - Respondent(s) =========================================================  Appearance : Mrs. Mauna BHATT for Applicant(s) : 1, MR B.D. Karia for Respondent(s) : 1, ========================================================= CORAM :  HONOURABLE MR.JUSTICE R.S.GARG and HONOURABLE MR.JUSTICE M.R. SHAH Date : 30/08/2006

ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE R.S.GARG)

ITR/69/1997 2/3 JUDGMENT

,

The Income Tax Appellate Tribunal Ahmedabad Bench ,

'A' has referred the following question to this Court for its

.

opinion in relation to Income Tax Appeal No 2862 to / /

-

- 2864 Ahd 1988 pertaining to Assessment Year 1982 83 to 1984 ; 85

'Whether on the facts and in the

,

circumstances of the case the assessee is

.

entitled to exemption u nder sec 11 of the Act ?' . 2

.

, In Income Tax Reference No 116 of 1997 the

,

Income Tax Appellate Tribunal Ahmedabad Bench 'C' has

referred the following question for opinion of this Court in

. & / / relation to Income Tax Appeal No 1363 1363A Ahd 1992

-

- ; pertaining to Assessment Year 1985 86 and 1986 87 ,

'Whether the Appellate Tribunal is right in

law and on facts in confirming the order

. . . ( )

passed by the C I T Appeals directing the

Assessing Officer to grant exemption under

section 11 to the assessee trust though the

trust is meant for benefit of the particular

religious community ?'

,

It is to be noted that the assessee Darul Ullam Hasamia is the

.

common assessee in both the matters The questions posed for

our consideration are whether the assessee Trust would be

entitled to exemption under Section 11 of the Income Tax Act

though the Trust is meant for the benefit of the particular

. religious community

ITR/69/1997 3/3 the Trust can be addressed as a 'Charitable Religious Trust' and

,

( )( )

. if that be so Section 13 1 b would not be applicable The

.

facts of the cases are identical In view of the earlier judgments

of this Court and our Judgment in the matter of Chandra

( ) Charitable Trust supra ,

we decided both the References against

.

the interests of the Revenue The

.

. References shall stand disposed of accordingly No costs [ . . , . ] R S Garg J . rmr [ . . , . ] M R Shah J

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →