ADIT, CHENNAI vs. S A A ISPAHANI TRUST, CHENNAI

ITA 2125/CHNY/2007Status: DisposedITAT Chennai29 December 2025AY 2003-04Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI S.R. RAGHUNATHA (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer to examine the potential violation of Section 13(1)(c) of the Income Tax Act, 1961, after providing the assessee with an opportunity to be heard.

What were the facts?

The assessee, a trust registered under section 12A, claimed repayment of loans as application of income. The Assessing Officer disallowed this claim, leading to an appeal. The matter has been remanded multiple times by higher courts for fresh consideration.

What were the issues?

Whether repayment of loans for construction of a commercial complex constitutes application of income, and whether there was a violation of Section 13(1)(c) due to common trustees and directors.

Which sections of the Income-tax Act were involved?

Section 12A,Section 11,Section 143(3),Section 13(1)(c),Section 13(3)

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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI S.R. RAGHUNATHA

Hearing: 29.12.2025

PER S.R.RAGHUNATHA, AM.

This appeal by the revenue is arising out of the order No.68/06-07 dated 22.12.2006, passed by the Learned Commissioner of Income Tax (A) - XI, Chennai (in short “ld.CIT(A)”) for the assessment year (A.Y) 2003-04 against the order u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) passed by the AO dated 31.03.2006. 2. This appeal is reinstated before this Income Tax Appellate Tribunal in conseq

The order continues below.

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