TMI Blog2008 (8) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... . Mrs. Arati Vissanji, assisted by Ms. Puja Banga, for the respondent. JUDGMENT The judgment of the court was delivered by PRAFULLA C. PANT J.- This appeal, preferred under section 260A of the Income-tax Act, 1961, (hereinafter referred as "the Act") is directed against the judgment and order dated October 31, 2006, passed by the Income-tax Appellate Tribunal, Delhi Bench "G", New Delhi (hereinafter referred as "the ITAT"), whereby the said authority has dismissed the appeal of the Revenue and affirmed the order passed by the Commissioner of Income- tax (Appeals)-II, Dehradun (hereinafter referred as "the Commissioner of Income-tax (Appeals) - II"), holding that the respondent-assessee is entitled to exemption under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has a historical background, as under: "In March, 1879, German Missionaries purchased properties of North India for educational activities. A society by the name of United Provinces Institute of the Blessed Virgin Mary was registered in 1949. Till 1972, the institute was running the St. Mary's Convent School, the St. Mary's Boarding Department, and the Nirmala Balika Vidyalaya, a Hindi medium school for poor children at Nainital. Similar activities were also conducted at other places. In the year 1972, the activities of the institute at Nainital were bifurcated for administrative convenience. The immovable properties used for these educational institutions were vested with the appellant-society and were to be let out to the Remnee Educati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh, are as under: "(a) To heal and teach charity and truth and to establish construct, organize, consolidate, support, develop, conduct, acquire, takeover, equip, endow, improve, alter, extend, administer educational institutions, research institutions for the benefit and uplift of all persons, irrespective of caste, creed or religion. (b) To takeover, manage, establish, administer, carry on, conduct, develop, equip, improve, alter and close down or dispose of educational, scientific and technical institutions, works and activities of all kinds in any part of India in pursuance of this memorandum for the benefit of the entire community, irrespective of caste, creed, race or religion. (c) To takeover and dispose of, establish, mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urrent finding of fact on the part of the Commissioner of Income-tax (Appeals) and the Income-tax Appellate Tribunal that the rental income earned by the respondent- society is being utilized again for the purposes of imparting education by maintaining the buildings and constructing new buildings for the same purpose. As such, we are of the view that the charitable purpose is not lost and it cannot be said that the assessee-respondent is not entitled to exemption claimed by it under section 11 of the Act. 8. Mr. Pitamber Maulekhi, learned counsel for appellant-Revenue, drew attention of this court to the case of Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC) and argued that where the assessee is earning profits it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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