Commissioner Of Income-Tax v. Nirmala Bakubhai Foundation

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No 238 of 1991 For Approval and Signature: Hon'ble MR.JUSTICE J.M.PANCHAL and Hon'ble MR.JUSTICE M.S.SHAH ============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements? 2. To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement? 4. Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder? 5. Whether it is to be circulated to the Civil Judge? : NO -------------------------------------------------------------- COMMISSIONER OF INCOME-TAX Versus NIRMALA BAKUBHAI FOUNDATION -------------------------------------------------------------- Appearance: MR MANISH R BHATT for Petitioner MR RK PATEL for Respondent No. 1 -------------------------------------------------------------- CORAM : MR.JUSTICE J.M.PANCHAL and MR.JUSTICE M.S.SHAH Date of decision: 16/01/2001 ORAL JUDGEMENT (Per : MR.JUSTICE J.M.PANCHAL) �At the instance of the Revenue, Income Tax Appellate Tribunal has referred following question of law for opinion of this Court in respect of Assessment Years 1981-82 and 1982-83 : "Whether, on the facts and in the circumstances of the case, the assessee of the case was entitled to claim exemption u/s.11 of the I.T.Act, 1961 in respect of the contributions of Rs. 2,59,550.67 ps. and Rs. 59,000/- in A.Y. 1981-82 and 1982-83 respectively as proper application of income u/s. 11 of the I.T.Act, 1961 ?" 2.�It was claimed by the assessee that out of its income for the years under consideration, amounts of Rs.2,59,550.67 ps. and Rs. 59,000/- were applied to the objects of the Trust and payment of the said amounts for the purposes of development and maintenance of B.M.Institute should be allowed. The Income Tax Officer disallowed contribution of Rs. 2,59,550.67 ps. and Rs. 59,000/- made by the assessee to B.M. Institute. C.I.T. (Appeals) granted allowance as claimed by the assessee and the Tribunal has confirmed the decision of the C.I.T. (Appeals). 3.�We have heard the learned counsel for the parties. The learned counsel for the parties state at the Bar that the controversy raised in the present Reference is concluded by the Division Bench of this Court in Commissioner of Income Tax v. Nirmala Babubhai Foundation, (1997) 226 ITR 394. In the said case also the assessee which was a trust, had made contribution to B.M.Institute and the High Court has upheld the assessee's claim for exemption under section 11 of the Income Tax Act, 1961. In view of the decision referred to above, the Reference is answered in favour of the assessee and against the Revenue. The Reference accordingly stands disposed of, with no order as to costs. ���(J.M.Panchal,J.) (M.S.Shah, J.) (patel)