1985 (10) TMI 114 - AT - Income Tax

Summary

Issues:
- Whether the income of the assessee trust is entitled to exemption under section 11 of the IT Act.

Analysis:
The judgment by the Appellate Tribunal ITAT Amritsar involved the appeal of an assessee trust for the assessment year 1977-78, focusing on the issue of whether its income is eligible for exemption under section 11 of the IT Act. The counsel of the assessee highlighted past instances where the income of the trust had been granted exemption for various assessment years, emphasizing the inconsistency of the Revenue's current refusal for the year in question. The Departmental Representative argued for a different approach taken by the ITO for the year under appeal, pointing out distinguishing features. However, the Tribunal, after considering the arguments and documents presented, found it unnecessary to delve into the second distinguishing feature as the first one had already been decided in favor of the assessee by the High Court. The Tribunal noted that in subsequent assessment years, the income of the trust had been consistently held to be exempt by different ITOs, indicating the strength of the ITO's stand for the year 1977-78. The Tribunal emphasized the importance of consistency in Revenue's actions across assessment years to avoid unnecessary litigation and expenditure for both parties. Ultimately, the Tribunal upheld the assessee's claim for exemption under section 11 of the IT Act based on the principle of consistency and the Revenue's own conduct, allowing the appeal.

Furthermore, the assessee had filed a Stay Application, which became infructuous upon the decision of the appeal. Therefore, the Tribunal dismissed the Stay Application accordingly.