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Habib Ismail Hospital & Medical Trust, ... vs Department Of Income Tax on 4 January, 2012 cites

Radhasoami Satsang, Saomi Bagh,Agra vs Commissioner Of Income Tax on 15 November, 1991

It is for this very reason that even the income tax department continued with the granting of exemption u/s 11 to the assessee trust even after the city civil court passed its order in 1977. The assessee further submitted that this established position of more than 29 years after the trifurcation took place is sought to be disturbed by the learned ADIT(E) for the first time with effect from assessment year 2006-07. It is well established that though the AO is not bound by the rule of res judicata or estoppel by record, the AO cannot arbitrarily depart from the stand 5 ITA NO. 5603 & 5604/Mum/09 M/s Habib Ismail Hospital & Medical Trust M/s Habib Ismail Education Trust taken by his predecessor officers. For this proposition, the assessee relied upon the decision of the Hon'ble Supreme Court in the case of Radhasoami Satsang Vs. CIT, 193 ITR 321, 329. The assessee pointed out that the assessee trust does not apply its income for any particular religious community or caste. While the original trust deed mentiones that the beneficiaries will be the members of Khopa community, in fact the income of the trust is applied to members of all communities because the assessee trust admits non khota students also in its educational institution. He contended that these facts had been in fact brought to the notice of the ADIT(E) and a list of non-khoja persons who were given the benefit by the appellant trust is on the record of the tax department. A separate list of non- muslims was given to ADIT(E) at his own request. Despite this fact being on record, the ADIT(E) had wrongly applied the provisions of section 13(1)(b). The assessee finally submitted that the assessee trust is not liable to pay any income tax as it is clearly exempt from tax u/s 11 of the Act, as the income-tax department itself had granted exemption right from 1934 up to assessment year 2004-05. The exemption has been granted for 29 years after the city civil court passed the order of trifurcation. This stand of the income tax department which is legally correct is binding on the present ADIT(E) for the assessment year 2006-07 and all subsequent years. After considering the submissions of the assessee, the CIT(A) held as under:-
Supreme Court of India Cites 18 - Cited by 1110 - R B Misra - Full Document
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