The income was accordingly being accumulated every year and invested in Government securities.
The High Court did number accept the majority view that the amount should be treated as income for the purpose of Section 11.
M. CT.
Firm, Rangoon on the Assets side was substituted by Building for Rs.
For the year ending April 12, 1970 which is the accounting year relevant to assessment year 1970 71, the amount of Rs.
The assessee accordingly filed Form 10 with the Income Tax Officer as required under Section 11 2 of the Income Tax Act, 1961.
8 lakhs cannot be include in the income of the assessee for the purposes of Section 11 1 .
The Trust had also earned during that assessment year other income amounting to Rs.
THE 4TH DAY OF FEBRUARY, 1998 Present Honble Mrs. Justice Sujata V. Manohar Honble Mr. Justice D.P.Wadhwa Aman Hingorani, Adv.
1,64,210.03.
1,64,210.03 under Section 11 1 of the Income Tax Act, 1961.
8 lakhs was an asset acquired in realisation of an outstanding due and hence, sum of Rs.
Since the balance income of Rs.
8 lakhs was to be treated as income of the assessee for the purposes of Section 11.
It was the case of the assessee that during the assessment year 1970 71, the advance to the said firm at Rangoon was in effect realised and invested in a building for the purpose of starting a hospital.
The Tribunal gave the benefit of Section 11 1 to the assessee for the assessment year 1970 71 in respect of the entire income companysisting of Rs.
The Income Tax Appellate Tribunal by a majority of 2 1 held that the sum of Rs.
On a Reference to the High Court, the High Court has held that the sum of Rs.
8 lakhs on the Assets side.
7,82,792.44 which was shown in the earlier balance sheet as on 1.4.1969 as advance to S. RM.
8 lakhs plus Rs.
8 lakhs plus Rs.
On March 1, 1963, the trustee resolved that the income of the Trust should be accumulated for a period of ten years companymencing from April 13, 1961 for the various charitable purposes which are set out in the Resolution.
The assessee is a Charitable Trust for carrying out Thiruppani or repairs to old Hindu temples, building new ones, giving aid to or establishing hostels, educational and industrial institutions etc.
The assessee claimed exemption for the total income of Rs.
The following question was referred to the High Court of Judicature at Madras by the Income Tax Appellate Tribunal under Section 256 1 of the Income Tax Act, 1961 Whether, on the facts and in the circumstances of the case, the income of the assessee is exempt from tax under Section 11 of the Income Tax Act for the assessment year 1970 71?
for Hingorani Associates, Advs.
for B.K. Prasad, Adv.
for the Respondent Harish Chandra, C.V.S. Rao, Advs.
for the Respondent J U D G M E N T The following Judgment of the Court was delivered This appeal pertains to assessment year 1970 71.
1, 64,210.03.
It is number in dispute that the objects of the Trust are charitable.
