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Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under Where letting out of property by assessee-trust, whose object was education, was an activity for fulfilling its objects, income derived from letting could not be treated as business income so as to deny assessee exemption under section 11/10(22) [A.Y. 1995-96] Where the assessee-trust's claim for exemption under section 10(22) was disallowed by the Assessing Officer : Held that the main object of the assessee-trust was education. On the facts of the case, the Tribunal found that the assessee-trust was running various educational institutions and it is solely existing for educational purposes within the meaning of section 10(22). The Tribunal also found that the assessee-trust had let out properties and received lease rentals and, held that, thus such activities could not be treated as business activities. The object of the assessee-trust was education and the activity of the assessee in letting out properties and receiving lease rentals was an activity carried on only to fulfil the object of the trust. Hence, the income derived by letting out the properties could not be treated as business income of the assessee. Therefore, exemption under section 11 could not be denied to the assessee. J. Nareshkumar for the Appellant. P.J. Rishikesh for the Respondent. JUDGMENT P.D. Dinakaran, J.-The Revenue has preferred the above tax case appeal against the order of the Income-tax Appellate Tribunal dated April 16, 2003, in I.T.A. No. 769/Mds/2000 for the assessment year 1995-96 raising the following substantial question of law for consideration: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the activity of letting out of property is not a business activity, and that the exemption under section 11 should not be denied to the assessee?" The brief facts, necessary for the disposal of the appeal are, the assessee, a trust, claimed exemption of income from properties and lease rentals under sections 10(22) and 11 of the Income-tax Act, 1961, which was disallowed by the Assessing Officer. On appeal, the…

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