COMMISSIONER OF INCOME-TAX V. DARUL ULLAIM HASANIA

ITR/69/1997

AI Insights

The case involves two Income Tax References (No. 69 of 1997 and No. 116 of 1997) concerning the assessee Trust, Darul Ullaim Hasania, which was intended for the benefit of a particular religious community. The primary legal question was whether the Trust was entitled to exemption under Section 11 of the Income Tax Act. The Income Tax Appellate Tribunal Ahmedabad had referred these questions to the High Court following their decisions in related Income Tax Appeals. The court's decision was influenced by previous judgments, particularly the case of Commissioner of Income Tax Vs Barkate Safiyah Society, which recognized the Trust as a 'Charitable Religious Trust'.

• Counselvise Citation: [2006] 140 COUNSELVISE.COM (IT) 745047 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 30-08-2006
• Assessment Year: misc
• Other Referred Cases: CIT Vs Chandra Charitable Trust, Commissioner of Income Tax Vs Barkate Safiyah Society
• Laws Referred To: Income Tax Act
• Result in Favour of: Respondent
• Court: HIGH COURT
• Department Lawyers: B D KARIA
• Assessee Lawyers: MAUNA BHATT
• Keywords: Charitable Trust; Exemption; Income Tax; Religious Trust
• Section: 11; 13(1)(b)

Judgement Text

"ITR/69/1997 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No. 69 of 1997 With INCOME TAX REFERENCE No. 116 of 1997 For Approval and Signature: HONOURABLE MR.JUSTICE R.S.GARG HONOURABLE MR.JUSTICE M.R. SHAH ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ========================================================= COMMISSIONER OF INCOME-TAX - Applicant(s) Versus DARUL ULLAIM HASANIA - Respondent(s) ========================================================= Appearance : Mrs. Mauna BHATT for Applicant(s) : 1, MR B.D. Karia for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE R.S.GARG and HONOURABLE MR.JUSTICE M.R. SHAH Date : 30/08/2006 ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE R.S.GARG) ITR/69/1997 2/3 JUDGMENT , The Income Tax Appellate Tribunal Ahmedabad Bench , 'A' has referred the following question to this Court for its . opinion in relation to Income Tax Appeal No 2862 to / / - - 2864 Ahd 1988 pertaining to Assessment Year 1982 83 to 1984 ; 85 'Whether on the facts and in the , circumstances of the case the assessee is . entitled to exemption u nder sec 11 of the Act ?' . 2 . , In Income Tax Reference No 116 of 1997 the , Income Tax Appellate Tribunal Ahmedabad Bench 'C' has referred the following question for opinion of this Court in . & / / relation to Income Tax Appeal No 1363 1363A Ahd 1992 - - ; pertaining to Assessment Year 1985 86 and 1986 87 , 'Whether the Appellate Tribunal is right in law and on facts in confirming the order . . . ( ) passed by the C I T Appeals directing the Assessing Officer to grant exemption under section 11 to the assessee trust though the trust is meant for benefit of the particular religious community ?' , It is to be noted that the assessee Darul Ullam Hasamia is the . common assessee in both the matters The questions posed for our consideration are whether the assessee Trust would be entitled to exemption under Section 11 of the Income Tax Act though the Trust is meant for the benefit of the particular . religious community ITR/69/1997 3/3 JUDGMENT . 3 . . . . , In I T R No 234 of 1995 between . . . . C I T Vs Chandra , Charitable Trust . . decided on 31 7 2006 we have decided the identical question after placing our reliance on the judgment of . this Court in the matter of Commissioner of Income Tax Vs , , Barkate Safiyah Society 213 ITR 492 and have observed that , , the Trust can be addressed as a 'Charitable Religious Trust' and , ( )( ) . if that be so Section 13 1 b would not be applicable The . facts of the cases are identical In view of the earlier judgments of this Court and our Judgment in the matter of Chandra ( ) Charitable Trust supra , we decided both the References against . the interests of the Revenue The . . References shall stand disposed of accordingly No costs [ . . , . ] R S Garg J . rmr [ . . , . ] M R Shah J "