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Issues Involved:
1. Whether the income derived by the assessee trust from business in kuries is exempt from tax under section 4(3)(i) of the Indian Income-tax Act, 1922, as amended by Act 25 of 1953 for the assessment years 1952-53 to 1956-57. Issue-Wise Detailed Analysis: 1. Exemption of Income Under Section 4(3)(i): The primary issue was whether the income derived by the assessee trust from the business in kuries is exempt from tax under section 4(3)(i) of the Indian Income-tax Act, 1922, as amended by Act 25 of 1953, for the assessment years 1952-53 to 1956-57. The assessee, a company registered under the Cochin Companies Act, claimed that its income from the business of conducting kuries was exempt under section 4(3)(i) of the Act. The Income-tax Officer, however, rejected this contention, stating that the business was not carried "on behalf of (any) religious or charitable institution" but by the assessee itself. The officer further argued that the Roman Catholic Syrian Christians of Trichur town were not the sole beneficiaries, as the memorandum of the company did not restrict its objects to any particular community. This interpretation was upheld by the Appellate Assistant Commissioner and the Tribunal. The High Court, however, noted that the assessee was indeed a charitable trust and that the business itself was held under trust for charitable purposes. The Court referred to the proviso to section 4(3)(i), which states that income derived from business carried on behalf of a religious or charitable institution shall be included in the total income unless the income is applied wholly for the purposes of the institution and either the business is carried on in the course of the actual carrying out of a primary purpose of the institution, or the work in connection with the business is mainly carried on by the beneficiaries of the institution. The Court emphasized that a business itself can be held under trust for religious or charitable purposes and that the income derived from such a business falls within the ambit of the exclusion granted by clause (i) of sub-section (3) of section 4. The Court cited previous judgments, including Commissioner of Income-tax v. Krishna Warriar and Dharma Vijaya Agency v. Commissioner of Income-tax, to support its view that the proviso does not apply to a business held under trust for charitable purposes. The Court concluded that the business in question was conducted by the assessee itself as part of its charitable activities, as outlined in the memorandum of association. Therefore, the proviso to section 4(3)(i) was not applicable, and the income derived from the business in kuries was exempt from tax. Judgment: The High Court answered the question in the affirmative, holding that the income derived by the assessee trust from the business in kuries is exempt from tax under section 4(3)(i) of the Indian Income-tax Act, 1922, as amended by Act 25 of 1953, for the assessment years 1952-53 to 1956-57. The judgment was delivered by M.S. Menon, Ag. C.J., and a copy of the judgment was directed to be forwarded to the Appellate Tribunal as required by sub-section (5) of section 66 of the Indian Income-tax Act, 1922.
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