G.C. Gupta, J. - (1.) The revenue has come up in appeal against a judgement and order dated 18th August, 2000 passed by the learned Income Tax Appellate Tribunal, 'E' Bench, Calcutta pertaining to the assessment year 1988 -89 affirming an order of the CIT(A) allowing exemption under Sec. 10(22A) of the Income Tax Act (hereinafter referred to as the 'Act').
(2.) The following questions of law were formulated at the time of admission of the appeal: - - "i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in law in granting exemption under Sec. 10(22A) of the Act ignoring the fact that the assessee had lent money on interest to different companies? ii) Whether on the facts and in the circumstances of the case the Tribunal was justified in law in holding that the assessee fulfilled the conditions stipulated in Sec. 10(22A) of the Income Tax Act, 1961 and directing to allow deduction under Sec. 10(22A) of the Act -
(3.) The facts and circumstances of the case briefly stated are as follows: - - "The assessee is a company under the Apeejay Group, controlled by Mr. Jeet Pal and Surindra Pal, which was incorporated as a public limited company on 27th March, 1984. Pursuant to a resolution and subsequent permission by the Central Government the assessee has been registered as a private limited company on 17th July, 1984. During the first accounting period relevant to the assessment year 1986 -87, the paid up capital was Rs. 5,040/ -. Soon after incorporation as a public limited company, between 28th March, 1984 and 30th March, 1984 the assessee raised a welfare fund of Rs. 4 crores from Assam Frontier Tea Limited, Singlo (India) Co. Ltd. and Empire Plantation (India) Ltd. All the aforesaid three companies also belonged to Apeejay Group of Companies and controlled by the same Mr. Jeet Pal and Mr. Surindra Pal.";