TMI Blog1988 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the Income-tax Officer to recompute the income under section 11, subject to the conditions under sections 12, 12A and 13 of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, under the powers vested in the first appellate authority under the Income-tax Act, the Commissioner of Income-tax (Appeals) could not have given such directions, irrespective of the orders of his predecessor ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that in view of the finding given in the appeal, it is not necessary for the Tribunal to consider all the issues raised by the assessee in respect of the jurisdiction of the Income-tax Officer to make the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax (Appeals) examined the matter at length and came to the conclusion that his predecessor was right in holding that the assessee was a public charitable institution entitled to its income being exempted by reason of the provisions contained in section 11 of the Act. But, then, the Commissioner who heard and disposed of the appeal for the assessment year 1977-78 set aside the assessment with a direction to the Income-tax Officer to consider whether the assessee satisfied the requirements of sections 12, 12A and 13 of the Act. The assessee felt aggrieved by the directions of the Commissioner to the Income-tax Officer to examine the provisions contained in sections 12, 12A and 13 of the Act because no such direction was given by the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the event of accumulation, the amount has to be invested in approved securities. There are also further restraints about the trustees being related to the settlor and in that event, the provisions contained in section 13 would come into operation. These are all matters which should have been gone into at the assessment stage. The Income-tax Officer did not consider it necessary to go into these aspects because at the threshold, he refused the assessee's claim under section 11. Once the claim that the assessee is a public charitable institution is rejected, then the further question, whether the conditions specified in sections 12, 12A and 13 are satisfied or not, is superfluous at that stage. But, once the Commissioner accepted the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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