Law:

Section:

Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under (Corpus donation) - Assessee-trust filed return of income and declared total income at nil - Assessing Officer found that assessee levied surcharge of 20 per cent on bills given to indoor patients and also recovered 25 per cent of fees paid to Honorary doctors - Assessing Officer treated these amount as corpus donation instead of income earned from activities of trust - He, therefore, denied exemption under section 11 - Commissioner (Appeals) followed Tribunal's order in assessee own case for earlier assessment year and allowed exemption - Tribunal, found that facts of earlier year were identical to assessment year under consideration and allowed exemption - Whether since order rendered for earlier assessment year had not been challenged by revenue, order of Tribunal was to be upheld - Held, yes [Para 10] [In favour of assessee] FACTS â–  The assessee-trust filed the return of income and declared total income at nil. â–  The Assessing Officer found that the assessee levied surcharge of 20 per cent on the bills given to the indoor patients and also recovered 25 per cent of the fees paid to the Honorary doctors. The Assessing Officer treated these amounts as corpus donation by assessee. He, therefore, denied exemption under section 11. â–  The Commissioner (Appeals) as well as the Tribunal allowed the appeal in favour of assessee by following the Tribunal's order in assessee own case for the earlier assessment years. â–  On appeal : HELD â–  The Tribunal has found that for the relevant assessment year, the only reason for not applying the Tribunal's order for earlier assessment years and as recorded by the Assessing Officer is that the revenue or the department has not accepted the said order. However, in light of fair concession of revenue that the Tribunal's orders, on same facts, as rendered for earlier assessment years, have not been challenged by revenue, then, it cannot fault the Tribunal or Commissioner for applying them. It is clear from the Tribunal's order that there was no issue before the Commissioner in…

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