2000 (5) TMI 34 - HC - Income Tax

Summary

Issues Involved: Appeal by Revenue u/s 260A of Income-tax Act against Tribunal's order for assessment year 1993-94 regarding exemption u/s 11 and treatment of forfeited amount.

Exemption u/s 11: The respondent, a society registered u/s 25 of Companies Act, claimed exemption u/s 11 of the Act. The Assessing Officer denied the benefit citing section 11(4A) inserted by Finance Act, 1983, and later substituted by Finance Act, 1991. Tribunal held that since the assessee did not carry on any "business," it was entitled to exemption u/s 11.

Scope of Appeal u/s 260A: Revenue argued that substantial questions of law arise from Tribunal's order. However, the Court found no new material facts presented by Revenue, and since there was no change in the activities of the assessee, consistency should be maintained. The Court noted that though res judicata does not strictly apply to income-tax proceedings, stale issues should not be raised again merely due to the wider scope of appeal.

Treatment of Forfeited Amount: Revenue contended that the forfeited amount should be treated as income since it was not deposited in the public account. Assessee's counsel disputed this, providing details of the deposit. The Court, considering the assessee's entitlement to exemption u/s 11, deemed this issue of academic interest only.

Conclusion: The appeal was dismissed with no order as to costs, emphasizing the assessee's entitlement to exemption u/s 11 and the lack of substantial questions of law in the Tribunal's order.