Madras H.C : Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the income of the trust from Kindergarten section is not entitled to exemption as running of a Kindergarten schools is not within the ambit of the trust’s objects ?

High Court Of Madras

Rukmani Kannan Vidyalaya Trust vs. CIT

Section 256(2)

R. Jayasimha Babu & Mrs. A. Subbulakshmy, JJ.

Tax Case Petn. Nos. 4 to 11 of 1999

13th April, 1999

Counsel Appeared

R. Janakiraman, for the Petitioner : S. Sundaresan, for the Respondent

JUDGMENT

R. Jayasimha Babu, J. :

We have heard counsel for the parties. We are satisfied that the questions proposed do require consideration by this Court.

The Tribunal is directed to refer the following questions :

“1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the income of the trust from Kindergarten section is not entitled to exemption as running of a Kindergarten schools is not within the ambit of the trust’s objects ?

Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the entire income of the trust has not been utilised for education activities and as such, the income from Kindergarten school and the ladies hostel is not exempt ?

Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the income from the ladies hostel it is not entitled for exemption as it is not a charitable object and involves an activity for profit ?

Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in rendering such a finding without adverting to the evidence and findings recorded by the CIT(A) ?

Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the rectification made to the objects of the trust cannot have any retrospective operation ?”

The Tribunal is directed to submit a statement of case together with material as is relevant for the purpose of deciding the questions.

[Citation : 249 ITR 111]

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