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Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under - Assessment years 1993-94 and 1994-95 - Whether where assessee-trust utilized 75 per cent of its income to achieve its charitable and educational object, assessee would be entitled to exemption under section 11 in light of section 11(4A) - Held, yes FACTS The assessee-trust claimed exemption under section 11 stating that since it had applied more than 75 per cent of its income for charitable and educational purposes, the income was eligible for exemption under section 11. The Assessing Officer, finding that the activities of the assessee in running the business of paper caps was hit by section 11(4A), held that the trust was not entitled to exemption. On appeal, the Commissioner (Appeals) allowed the assessee's claim. On revenue's appeal, the Tribunal dismissed the same. On appeal : HELD The Supreme Court in Asstt. CIT v. Thanthi Trust [2001] 247 ITR 785 held that a business whose income is utilised by the trust or the institution for the purposes of achieving the objectives of the trust or the institution is a business which is incidental to the attainment of the objectives of the trust or institution. In the instant case, the Tribunal found that the income of the assessee had been employed to achieve its charitable objects and, therefore, even in the light of section 11(4A), and applying the decision in Asstt. CIT v. Thanthi Trust (supra), the assessee was entitled to exemption under section 11. Hence, there was no substantial question of law for consideration by the High Court and, therefore, the appeal were to be dismissed. Note : The case was decided in favour of the assessee. CASES REFERRED TO Asstt. CIT v. Thanthi Trust [2001] 247 ITR 785 (SC) and Thanthi Trust v. CBDT [1995] 213 ITR 639 (Mad.) Mrs. Pushya Sitaraman for the Applicant. JUDGMENT P.D. Dinakaran, J.-These appeals are directed against the orders dated April 23, 2004 and June 14, 2001, of the Income-tax Appellate Tribunal, Madras "A" Bench, made in I. T. A. Nos. 1972/Mds/1997 and 316/ Mds/1997, respectively, with reference to the assessment years 1994-95 and 1993-94. The brief…

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