JUDGMENT
1. This is an appeal against the judgment and order-dated 21.02.2005, passed by the Income Tax Appellate Tribunal, (Delhi Bench 4F” New Delhi) in ITA No.4178 /Del/2002.
2. The substantial questions of law raised in the appeal are as follows:
Whether on facts and in the circumstances of the case, the learned ITAT was legally justified in law in holding that letting out of properties to another institution constitute charitable activity on the part of the appellant society making its income eligible for exemption Under Section 11 of the I.T. Act, 1961?
Whether on the facts and circumstances of the case, the Hon4ble ITAT was correct in law, in holding that merely registration Under Section 12A entitles a society to claim exemption Under Section 11 of the I.T. Act, 1961?
3. Brief facts of the case giving rise to the present appeal are that the assessee is an Association of Persons and runs a school at Nainital. The assessee let out the number of properties to various educational institutions, boarding houses etc. and they are being used by the tenant institutions as such. The assessee, derives the rental income. The assessee claimed exemption Under Section 11 of the I.T. Act on the ground that its activities were of charitable nature insomuch so that its sole object was to promote education. However, the Assessing Officer was of the view that since the assessee had let out its properties to other educational institutions, the assessee itself could not be said to be engaged in educational activities. Therefore, the claim of exemption Under Section 11 of the I.T. Act was denied to the assessee. Being aggrieved, the assessee went in appeal before Commissioner of Income Tax (Appeals) who also held that the activity of letting out its properties to educational institutions by itself would not constitute any charity and accordingly the appeal preferred by the assessee was dismissed. The assessee thereafter preferred second appeal before Income Tax Appellate Tribunal against the orders passed by the Commissioner (Appeals) who allowed the appeal of the assessee and set aside the orders passed by the Commissioner (Appeals) and Assessing Officer. Feeling aggrieved, the Department has come up in appeal before this Court.
4. We have heard learned Counsel for the parties and perused the judgments given by the courts below. In the facts and circumstances of the case, after having gone through the order passed by the Commissioner of Income Tax as well as also the impugned order of the Income Tax Appellate Tribunal and in the light of the material available with us, we are of the view that the questions of law raised for determination in the present case has already been concluded by the finding of fact and there appears to be no such substantial question of law to be answered by this Court. The Tribunal while relying upon its earlier judgment set aside the order passed by the Commissioner (Appeals) and granted exemption under Section 11 of the Income Tax Act. Hence, the Income Tax Appellate Tribunal has elaborately dealt with each and every ground specifically in the impugned judgment and we are in full agreement with the findings recorded by the learned Tribunal in its judgment. The findings recorded by the learned Tribunal are the findings of fact and do not call for any interference by this Court. Therefore, the question raised in the appeal is accordingly decided in favour of the Assessee and against the Department.
5. In view of the above, we dismiss the appeal. The question in this appeal is answered against the Revenue and in favour of the assessee. No order as to costs.