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5. On an examination of the above submissions, the AAC accepted the same. She held that as per the trust deed the assessee-trust is a charitable trust and the expenditure claimed to be on the objects of the trust appeared to be in the nature of charity. She further held that some financial assistance given to the employees of the settlor should not debar the trust from getting exemption under Section 11, as the trust is mainly charitable in nature and the income is applied to charitable purposes. She also pointed out that the assessee had duly applied for registration to the Commissioner under Section 12 A within the prescribed time and that non-filing of Form No. 10B along with the return of income by itself would not be a sufficient ground to refuse the exemption under Section 11. She, therefore, held that the expenditure claimed to be on the objects of the trust could not be called an application of income and the income of the trust was duly entitled to exemption under Section 11. The AAC, therefore, directed the ITO to grant exemption under Section 11 to the income of the trust as per law and allowed the assessee's appeal for 1979-80.

6. Following her order in the assessment year 1979-80, the AAC allowed the assessee's appeal for 1980-81 and directed the ITO to grant exemption under Section 11 to the income of the trust.

7. The revenue feels aggrieved by these orders of the AAC. Hence, the present appeals to the Tribunal. We have heard Shri A.P. Walvekar, the learned departmental representative, and Shri A.D. Shinde, the learned chartered accountant for the assessee, and carefully considered their submissions in the light of the materials placed before us. In our view the decision of the AAC granting exemption to the assessee-trust under Section 11 in both the assessment years 1979-80 and 1980-81 is right and has to be upheld. There is no dispute that the assessee-trust was established on 30-7-1956 by a trust deed executed on that date and registered on 24-9-1956 for various charitable objects specified in the said trust deed. There is also no dispute that the assessee-trust has applied for registration to the Commissioner as early as 26-6-1973, under Section 12A and that the said application is still pending disposal by the Commissioner. It is also an undisputed fact that from the assessment years 1973-74 to 1978-79 exemption under Section 11 has been granted to the assessee-trust by the Income-tax Department. When we examined the objects of the department in the right of the above undisputed facts, it would be clear that there is no substance in the objection of the revenue that the assessee-trust is not registered under Section 12A. Similarly, the objection of the ITO in the assessment order for 1979-80 that the audit report in Form No. 10B was not enclosed with the return of income also loses its force, when once it is accepted that such audit report was produced by the chartered accountant representing the assessee-trust before the ITO at the time of hearing in response to the notice under Section 143(2) of the Act. In fact this position was not controverted before us by the revenue. We may further mention that it is not the requirement of law that such audit report in Form No. 10B should be attached, in the sense pinned, to the return of income of the assessee in order to entitle the assessee-trust to exemption under Section 11. This position is now well settled in a number of decisions arising under Section 184 of the Act relating to registration of firms under the Act. We are, therefore, of the view that the AAC has rightly rejected this objection raised by the ITO, in the assessment year 1979-80.