2000 INSC 1237
                                SUPREME COURT OF INDIA

                                       Commr.of Income Tax

                                                  Vs.

                                         Dharmodayam Co.

                    (S.P.Bharucha, Doraiswamy Raju and Ruma Pal JJ.)

                                             21.11.2000

                                               ORDER

1. The assessment years here involved are 1984-85 and 1985-86. Until the
introduction of Section 11 (4-A) into the Income Tax Act, 1961 on 1-4-1984, the case
of assessee was governed by the decision of this Court in its own case CIT v.
Dharmodayam & Co. Section 11 (4-A) has introduced conditions in the application of
sub-sections (1), (2), (3) and (3-A) of Section 11. It does not appear that the Tribunal
has applied its mind to these conditions and given findings of fact as to whether or not
they are satisfied. Nor has the High Court given due consideration to this aspect. To be
able to decide whether the assessee is entitled to the benefit of the exemption under
Section 11, it is necessary for the Tribunal to determine whether it satisfies the
requirements of Section 11(4-A).

2. Accordingly, the orders of the High Court under challenge and the orders of the
Tribunal from which the reference was made are set aside and the matters (ITA
No.681/Coch of 1987 and ITA No.264/Coch of 1989) are restored to the file of
Income Tax Appellate Tribunal, Cochin to be considered afresh in the light of what
has been stated above.
3. The appeals are allowed accordingly.
4. No orders as to costs.