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JUDGMENT B. Manohar, J. - The revenue has preferred these two appeals under Section 260-A of the Income Tax Act, 1961 (for short 'the Act') being aggrieved by the common order dated 27-2-2007 made in ITA Nos.187 & 188/Bang/2006 passed by the Income Tax Appellate Tribunal, Bangalore Bench 'B' (hereinafter referred to 'the Tribunal') wherein the Tribunal had allowed the appeal filed by the respondent-assessee setting aside the order passed by the Commissioner of Income Tax, Mangalore under Section 263 of the Act upholding the order passed by the Assessing Officer for the assessment years 2000-01 and 2001-02. 2. The facts leading to the filing of these two appeals are as follows: The respondent-assessee is a Charitable Trust running a large number of Institutions such as Fr. Muller General Hospital, Fr. Muller Medical College, Fr. Muller Homeopathy Medical College, Pharmaceutical Division, St. Johns Leprosy Hospital, Rehabilitation Unit and Father Muller College of Nursing. The assessee-Trust claimed exemption under Section 11 of the Act. For the assessment year 2000-01 and 2001-02, the assessee filed 'Nil' return of income on 31-10-2001 claiming exemption of income. On the basis of tax evasion petition received by the Additional Commissioner of Income Tax, an enquiry was conducted and notice under Section 148 of the Act was issued for both assessment years. During the course of enquiry, the Assessing Officer noticed that the assessee-Trust had advanced a sum of Rs.30,00,000/- during the assessment year 2000-01 and a sum of Rs.50,00,000/- during the assessment year 2001-02 respectively to M/s. Janamadhyama Prakashana Limited which was running Kannada daily known as JANAVAHINI. Before the Assessing Officer, the assessee has contended that the said amount was advanced to M/s. Janamadhyama Prakashana for the purpose of advertisement, printing and publicity of the programmes of the Trust. The Assessing Officer on verification of the records and the balance sheet of the Trust found that the said amount was mentioned under the head loans and advance'. Advancing of the such a huge amount is in violation of Section 11(5) of the Act. Hence, the assessee is not entitled…

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