INCOME TAX OFFICER Vs. KASTURBA MEDICAL COLLEGE TRUST
INCOME TAX APPELLATE TRIBUNAL
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A.V. Balasubramanyam, Judicial Member -
(1.) THE short question in this appeal is whether the assessee is entitled to exemption under Section 10(22) of the Income-tax Act.
(2.) The assessee is a Trust constituted in 1952 with the object of setting up medical colleges at Manipal and other places including hospitals necessary for the purpose of imparting such medical education. The assessment year is 1983-84 and the previous year terminated on 31-3-1983.
The assessee had income during the year. The said income was claimed to be exempt under Section 10(22). The Income-tax Officer rejected the claim and brought the income to charge. The assessee preferred an appeal and the Commissioner of Income-tax (Appeals) held that the income was eligible for exemption under Section 10(22). The revenue is in appeal objecting to that order.
(3.) THE Trust had established medical colleges. During the year of account those medical colleges had been transferred to Dr. T.M.A. Pal Foundation, another Trust. After the said transfer, there was no college in the administration, control or management of the assessee-Trust. In the view of the Income-tax Officer, the assessee-Trust had not carried out any activity set out in Section 10(22). In other words, the objection was that the Trust had not run an educational institution during the previous year.;
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