TMI Blog2011 (3) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the matter has gone into by the assessee by producing materials before the assessing authority - Appeal is disposed of - 809 to 813 of 2010 - - - Dated:- 11-3-2011 - MRS.JUSTICE CHITRA VENKATARAMAN, MR.JUSTICE P.P.S.JANARTHANA RAJA, JJ. For appellant : Mr.V.Ramachandran, S.C. for Dr.Anitha Sumanth For respondent : Mr.K.Subramaniam, Senior Standing Counsel. COMMON JUDGMENT CHITRA VENKATARAMAN,J. The assessee has come on appeal as against the order of the Income Tax Appellate Tribunal, Madras "B" Bench, Chennai, dated 03.03.2004 made in ITA Nos.847 to 851/Mds/2003 for the assessment years 1995-1996 to 1999-2000 by raising the following substantial questions of law. "1.Whether in the facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educational institutions, orphanages and to do all activities of advancement of education. 4. A perusal of the Trust Deed further shows that the object is not just restricted to advancement of education alone. It is stated that during the relevant assessment years, the Trust was running two schools for primary and for higher education in Salem. The Trust has also received corpus donations as per the Will executed by R.Susila, wife of Ramalingam, the author of the Trust. The Trust received donations to the tune of Rs.8,81,500/-, which is lying in deposit with M/s Ramalingam Investments, a sister concern of the Trust. These deposits were made in the sister concern by the testators and not by the Trust. It is stated that the Trust enjoyed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing orphanages, Kalyana mandapam, money lending business, etc., it cannot be held that the Trust was one solely carrying on the activities of educational institutions. The Tribunal further pointed out that having regard to the fact that the assessee had not fulfilled the conditions laid down under Section 11(5) of the Act and had diverted the funds to its sister concern, the assessee was not entitled to the exemption under Section 11 and 12 of the Act. To claim exemption under Section 10(22) or 10(23c), the assessee has to carry on the activities solely of educational institutions. In the case on hand, the assessee is existing not only for educational activities but also carrying other activities like construction of kalyana mandapam, runni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he pointed that the deposit made under Section 10(22) cannot be rejected outrightly by the Tribunal. 8. As far as the issue raised as to the correctness of the reassessment proceedings are concerned, learned Senior counsel pointed out that the assessee has not made any serious dispute. Consequently, the issues now raised before this Court have to be considered only with reference to the applicability of Section 11(5) and 12 of the Act and in the event of the assessee failing to satisfy the Court with reference to the above Sections, the question has to be considered as regards the availability of exemption under Section 10(22) of the Act. 9. Learned Senior Standing counsel for the revenue took us through the order of the Tribunal only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee that the voluntary contributions received by the assessee Trust shall form part of the corpus of the Trust. The receipts could not be treated as income under Section 12 of the Act. A perusal of the order of the Tribunal shows that both on the aspect of Section 11(5) as well as Section 12, particularly, the factual issues, could not be in any manner challenged before this Court. Consequently, the findings thus remained unassailed and binding on the assessee. We do not find any necessity to remand the matter for consideration by the assessing authority. Having regard to the above said fact, the assessee is not entitled to any priority under Section 11(5) of the Act as it had been failed to satisfy the conditions laid down therein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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