9911796707
TMI Blog2002 (11) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... itable Institutions Act. The trust was conducting chitty business. In the assessment for the year 1984-85, the trust claimed exemption under section 11 of the Act on the ground that it is a charitable trust. The exemption under section 11 of the Act was being allowed to the respondent-assessee up to and including the assessment year 1983-84. Section 11 of the Act was amended in 1983 by incorporating section 11(4A). Based on the said amendment the assessing authority rejected the assessee's claim on the ground that the assessee-trust did not satisfy the requirements of section 11(4A)(b) of the said Act. The first appeal filed by the assessee was not successful. However, in the second appeal, the Tribunal allowed the claim for exemption relyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t' for the purposes of section 11 to include a business held under trust. Sub-section (4A) restricts the benefit under section 11 so that it is not available for income derived from business unless (a) the business is carried on by a trust only for public religious purposes and it is of printing and publishing books or any other notified kind, or (b) it is carried on by an institution wholly for charitable purposes and the work in connection with the business is mainly carried on by the beneficiaries of the institution, provided, in both cases; that separate books of account are maintained by the trust or the institution in respect of such business. Trusts and institutions are separately dealt with in the Act (section 11 itself and sections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. In the absence of a finding as to whether the assessee-trust can be treated as an institution we will not be in a position to decide as to whether the assessee trust is entitled to get the benefit of exemption under section 11 in the light of sub-section (4A) of the Act. Since there is no such finding we are of the view that the matter must be remitted to the assessing authority for fresh consideration in the light of the decision of the Supreme Court in Thanthi Trust's case [2001] 247 ITR 785. We accordingly set aside the orders of the Assessing Officer and the two appellate authorities and remit the matter to the Assessing Officer for disposal in accordance with law and in the light of the decision of the Supreme Court mentioned abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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