TMI Blog2007 (1) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... ties of letting out properties & receiving lease rentals is an activity carried on only to fulfill the object of the trust. Hence, the income derived by letting out the properties cannot be treated as business income of the assessee - exemption allowed - 119 of 2003 - - - Dated:- 29-1-2007 - MR. P.D.DINAKARA AND MRS. CHITRA VENKATARAMAN JJ. JUDGENT The judgment of the court wasdeliv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer. On appeal, the Commissioner of Income-tax (Appeals) held that the income from properties let out is not a business income, and allowed the exemption. The Appellate Tribunal, on appeal, held that the activities of the assessee cannot be treated as its business activities and confirmed the order of the Commissioner of Income-tax (Appeals). Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e computation of income. 5. This Court in C.I.T. v. Kshatriya. Girls Schools Managing Board [2000] 245 ITR 170 held that the question of eligibility to exemption under section 10(22) of the Act has to be decided with reference to the objects of the society and if the trust, in order to attain its main objects, conducts some business for raising the funds, the claim for exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s running various educational institutions and it is solely existing for educational purposes within the meaning of section 10(22) of the Act. The Appellate Tribunal also found that the assessee trust has let out properties and received lease rentals and hence, such activities cannot be treated as business activities since the assessee is solely existing for educational purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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