TMI Blog1993 (3) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to Roman Catholic Latin Christians only. Its main objects mentioned in the Memorandum of Association are as follows :- (a) To raise funds by way of collection of subscriptions, running of kuries, collection of donation and other appropriate means and the funds so accumulated be utilised for "charitable purposes" as defined in the Income-tax Act, 1961 (for the time being in force). (b) To construct and contribute all possible means to promote education, and charitable activities. (c) To hire or purchase movables and immovables and to construct suitable buildings for carrying on the business of the company and to promote education and charitable activities. (d) To encourage others to start similar institutions to work out schemes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by sections 11 and 12 will not be available to the business income of a charitable trust whose objects are relief of the poor, education or medical relief unless the business is carried on in the course of the actual carrying out of the primary objects of the trust or institution. The main objects of the assessee are to promote education and charity. The business carried on is in kuries. Thus, this has no connection whatsoever with the main objects of the assessee and by no accepted criteria, can it be said that carrying on business in kuries is in the course of actual carrying out of the primary objects of the assessee. Therefore, the income from kuri business will not get the benefit of sections 11 and 12 in view of the new provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted in the event of ambiguity in the language employed in the article. Therefore, keeping in view the fact that an article which collides with the provisions of Memorandum of Association has no legal validity, we read down the article to the effect that the words for any purpose would mean only "for any purpose authorised in the Memorandum". Such an interpretation besides advancing the cause for which the trust was formed will also avoid the conflict between the Memorandum of Association and Articles of Association of the assessee-company. Thus, we hold that the provisions of article 40 of Articles of Association if interpreted in the above manner will not disentitle the assessee to the grant of exemption under section 11 of the Act. Fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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