Supreme Court Of India
Director Of Income Tax vs. Jag Shanti Charitable Trust
Sections 11, 260A
Y.K. Sabharwal, C.J. & C.K. Thakker, J.
Civil Appeal No. 6817 of 2005
14th November, 2005
Counsel Appeared
Mohan Parasaran with Amit Dayal & B.V. Balram Das, for the Appellant : Ms. Radha Rangaswamy & Rajesh Mahana, for the Respondent
ORDER
By the court :
Leave granted. The respondent-assessee was denied exemption under ss. 11 and 12 of the IT Act, 1961, and the entire receipt of rupees thirty lakhs in its hands was treated as income. The AO was of the view that the amount of rupees thirty lakhs received from Dubai was in violation of the Foreign Contribution (Regulation) Act, 1976. The CIT(A), setting aside the order of the AO, came to the conclusion that the assessee is entitled to exemption. The Tribunal has affirmed the order of the CIT(A).
The appeal filed by the appellant under s. 260A of the IT Act, 1961, has been dismissed by the High Court observing that no substantial question of law arises in the appeal.
The trust was registered after the receipt of the amount by the assessee from Dubai, though it is claimed that the application for registration had been filed earlier. The question also is about the source of contribution as opposed to its identity. We have indicated these questions only for the purpose of showing that the appeal (IT Appeal No. 242 of 2004) required deeper consideration by the High Court and it could not have been dismissed on the ground that no substantial question of law arises therein. Since we are remitting the appeal for decision afresh by the High Court, we express no opinion on the questions involved. The High Court would decide the appeal without being influenced by any observation made in this order.
Accordingly, the civil appeal is allowed, impugned order is set aside and IT Appeal No. 242 of 2004 is remitted to the High Court for its fresh determination in accordance with law.
No costs.
[Citation : 285 ITR 227]
