Commissioner of Income-tax (Exemptions) v. Bhai Mohan Singh Foundation
[Citation -2017-LL-0816]
| Citation | 2017-LL-0816 |
|---|---|
| Appellant Name | Commissioner of Income-tax (Exemptions) |
| Respondent Name | Bhai Mohan Singh Foundation |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 16/08/2017 |
| Assessment Year | 2007-08 |
| Judgment | View Judgment |
| Keyword Tags | application of income • question of law • non-charitable |
| Bot Summary: | This is an appeal under Section 260A of the Income Tax Act, 1961 by the Revenue against the order dated 11th January, 2017 passed by the Income Tax Appellate Tribunal in ITA No. 2803/Del/2013 for the Assessment Year 2007-08. The Revenue is aggrieved by the concurrent orders of the Commissioner of Income Tax CIT and ITAT with regard to two issues. The first issue concerns the shares held by the Assessee in the Delhi Guest House Pvt. Ltd. The CIT and the ITAT held that as a result of a dispute which arose amongst the family members of Dr. Bhai Mohan Singh, the Assessee was restrained from converting the shares held in DGHPL to other permissible forms of investment before the time limit prescribed in clause of proviso to Section 13(1) of the Act. In view of the above concurrent factual finding, no question of law arises for determination on this aspect. The second issue concerns the payment of Rs. 3.33 crores as charges for conversion of the property held by DGHPL from leasehold to freehold. This issue is linked with the earlier issue regarding the shareholding in DGHPL. The conversion of the property from lease hold to free hold, of the entity whose shares were held by the Assessee could not in the circumstances be said to be application of income for non-charitable purposes. No substantial question of law arises on this aspect as well. |