IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A.No.631 of 2009 Date of Decision:-19.11.2009 Commissioner of Income Tax-I, Chandigarh ---Appellant Versus M/s Simla Chandigarh Diocese Society, Catholic Church, Sector 19-A, Chandigarh ---Respondent CORAM:- HON'BLE MR.JUSTICE SATISH KUMAR MITTAL HON'BLE MR.JUSTICE MEHINDER SINGH SULLAR Present:- Mrs.Urvashi Dhugga, Advocate for the appellant. SATISH KUMAR MITTAL, J. (ORAL) The revenue has filed the instant appeal under section 260-A of the Income Tax Act, 1961 against the order dated 30.3.2009 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh in ITA No.24/CHD/2009 for the Assessment Year 2005-2006 raising the following substantial questions of law:- 1. Whether on the facts and in the circumstances of the case the Hon'ble Tribunal was correct in law in sustaining the order of the ld.CIT (A), holding that the assessee is entitled to benefits of exemption of income under section 11(1)(a) of the Income Tax Act as against exemption of income u/s 11 (1)(d) as computed by the Assessing Officer? 2. Whether the Hon'ble Tribunal was correct in law in deleting the addition of Rs.37,89,983/- and in coming to the conclusion that interest income is not 'income from other sources' and therefore part & parcel of accumulated funds, especially when the 'interest income is income from other sources' and the same is not applied for fund purpose but for profit on funds till the same are utilized? 3. Whether on the facts and in the circumstances of the case the Hon'ble Tribunal was correct in law in sustaining the order of the ld.CIT (A), in deleting the addition of Rs.11,691/- on account of Misc.Income, Rs.1,39,775/- on account of registration fee and Rs.16,92,450/- on account of building fund which are neither donations nor voluntary contributions and fall outside the ambit of Section 11(1)(d) of the Income Tax Act and are to be taxed as 'income from other sources'? 4. Whether on the facts and in the circumstances of the case the Hon'ble Tribunal was correct in law in sustaining the order of the ld.CIT (A), in deleting the addition of Rs.29,43,990/- made on account of rent received? Learned counsel for the Revenue very fairly states that the aforesaid questions of law have already been answered against the Revenue in ITA No.566 of 2008 titled Commissioner of Income Tax-I, Chandigarh vs. M/s Simla Chandigarh Diocese Society, Catholic Church, Sector 19-A, Chandigarh and ITA No.939 of 2008 titled Commissioner of Income Tax-II, Chandigarh vs. M/s Sarvhitkari Educational Society, Sector 21-B and now Sector 42, Chandigarh. In view of the above, this appeal is dismissed. (Satish Kumar Mittal) Judge (Mehinder Singh Sullar) 19.11.2009 Judge AS