The Director Of Income Tax(Exemptions)-I,Chennai - 600 034 v. M/S.the Wellingdon Charitable Trust,Raja Annamalaipuram,Chennai - 600 028

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 30.07.2019CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TCA.Nos.24 to 26 of 2009 The Director of Income Tax(Exemptions)-I,Chennai - 600 034...Appellant/ Appellant in all the appeals Vs. M/s.The Wellingdon Charitable Trust,Raja Annamalaipuram,Chennai - 600 028...Respondent/ Respondent in all the appeals Prayer : Tax Case Appeal filed under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal Madras 'C' Bench, dated 15.04.2008 inI.T.A.No.1759, 1760 & 1761/Mds/07 for the assessment year 2001-02, 2003-04 and 2004-05 against the order passed by theCommissioner of Income Tax (Appeals)-XI, Chennai made in ITANo.479,480 & 487/06-07, dated 09.02.2007 against the DeputyDirector of Income Tax (Exemptions)-I, Chennai made inG.I.No./PAN 1646-T, dated 15.12.06 and G.I.No/PAN 1646-T, dated15.12.06 and G.I.No./PAN 1646-T For Appellantin all the appeals: Mr.J.Narayanasamy Senior Standing Counsel [Judgment of the Court was delivered by T.S.Sivagnanam, J.] These appeals by the Revenue under Section 260 A of theIncome Tax Act, 1961 (hereinafter referred to as "the Act") aredirected against the common order dated 15.04.2008 inI.T.A.No.1759, 1760 & 1761/Mds/07 for the assessment year 2001-02, 2003-04 and 2004-05. https://hcservices.ecourts.gov.in/hcservices/ 2.We have heard Mr.J.Narayanasamy, learned Senior StandingCounsel appearing for the appellant/revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent/assessee. 3.The appeals have been admitted on the followingsubstantial question of law :“Whether in the facts and in thecircumstances of the case, the Tribunal was rightin holding that the income arising out ofrunning/letting out of two auditoriums and hostelheld by the assessee cannot be treated asassessable income of the trust as per theprovisions of Section 11(4A)?” 4.The Tribunal in the impugned order referred to its earlierdecisions on identical issue in the assessee's own case for theearlier assessment years and dismissed the appeals filed by therevenue. The decision of the Tribunal in the earlier assessmentyears was the subject matter of appeal before this Court in thecase of Director of Income Tax (Exemptions) vs. WillingtonCharitable Trust [(2011) 330 ITR 0024(Mad)] and it was held thatthe substantial questions of law raised were answered in favourof the Revenue and in view of their reasoning that a businessincome, if utilized towards the achievement of the object of theassessee trust, would be incidental to the achievement of theobject, the Division Bench of this Court deemed it fit to remandthe assessment files to the AO to decide as to whether suchbusiness income was used for the attainment of the object andthereafter proceed in accordance with law. Ultimately, theorders passed by the Tribunal were set aside and those appealswere allowed to the extent indicated above. 5.Thus, following the above decision in the assessee's owncase, the the common order passed by the Tribunal is hereby setaside and remanded to the Assessing Officer as has been orderedin (2011) 330 ITR 0024(Mad) and the appeals stand disposed ofaccordingly. No costs.cse //True Copy// Sub Assistant Registrar To1.The Income Tax Appellate Tribunal,'C' Bench, Chennai. 2. The Commissioner of Income Tax, (Appeals-XI),Chennai - 34. 3. The Deputy Director of Income Tax, (Exemptions) -I,Chennai. +1cc to Mr.S.Sridhar, Advocate, SR.No.65072 TCA.Nos.24 to 26 of 2009 Kak(18/09/2019)