TMI Blog2000 (3) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... vide facilities for close social and political intercourse and means for promotion of physical and intellectual culture. (e) To provide for and promote such other activities and objects as may be thought to be feasible and desirable from time to time." 2.2 Initially the objects of the Trust could not be activated. The trust was lying defunct till the year 1983. It moved an application to CIT,Meerutin 1983 under section 12A of the Income-tax Act, 1961 (hereinafter called the "Act" for registration. Prayer for condonation of delay was also made. The assessee-trust, also moved an application for exemption under section 80G of the Act. 2.3 For the assessment year 1984-85 return was filed on21-8-1984. Assessment was completed on19-3-1987under section 143(3). Assessee claimed exemption under section 11 of the Act. In the return it reflected receipts of Rs. 32,486. Exemption under section 11 was allowed. CIT found assessment erroneous and prejudicial to the interest of Revenue. Therefore, he assumed jurisdiction under section 263 on the ground that the objects and purpose of the trust were not wholly charitable as such the donations received by the trust was exigible to tax. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Shri H.G. Malik, learned counsel for the assessee appeared before us. It was vehemently contended that the assessee-trust was created for charitable purposes. Our attention was invited on the various clauses of the Memorandum of Association. It was submitted that there is absolutely nothing to indicate that the assessee was not engaged in the charitable activities. 4.1 Shri Malik, placed before us the sanctioned plan of the building owned by the trust. Our attention was invited in the plan on the hall, library and garden. It was submitted that all these was constructed in conformity with the objects of the trust set out in Memorandum. 4.2 Shri Malik submitted that the registration under section 12A was granted to the trust by the CIT. The nature of the objects was duly considered, while granting registration. De hors charitable objects, registration under section 12A is not possible. In short CIT for 12A purposes found objects as charitable. Now it is not open for the Assessing Officer to take a different view in the matter. 4.3 Shri Malik submitted that the Assessing Officer did not indicate any instance to demonstrate that the assessee did incur expenditure on non-charit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of our countrymen. In doing so, it has supplemented the word of a welfare state; in turn the state on its part recognised this contribution by giving generous tax concessions to the donations given to philanthropic institutions and also to the income thereof when applied to public religious and charitable purposes. 5.1 The expression "charity" or "charitable purposes" do not admit to rigid definition. In order to understand what these expressions legally convey, one can merely enumerate its various aspects and characteristics as they have been recognised by the laws of a particular country. In common parlance the word "charity" denotes the instincts of piety and benevolence dictated by the desire to do good. The law recognises no purpose as charitable unless it is of a public character, that is to say, a purpose must, in order to be charitable, be directed to the benefit of the community. 5.2 The objects for which the assessee-trust was created are emuernated in para 2.1 of this order. The dominant object is to educate Indian public on subjects of civic and national interest and generally to create the foster sound public opinion on all subjects of Indian importance on non-comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which appears from the language is to awaken the society for political thinking out of the wedlock of sociopolitical sectors, to produce intellectual culture. 5.6 Coming not to clause (e) we find that the words used are "To provide for and promote such other activities and objects as may be thought to be feasible and desirable from time to time." The word "such" as is used in this clause should be construed with reference to the objects enumerated in the preceding paras. Rule of "ejusdem generis" prescribes that where there are general words following particular and specific words, "the general words must be confined to things of the same kind as those specified. The objection of the Revenue was that by using the words promote such other activities and objects, trustees may divert the funds to non-charitable purposes also. In our opinion, there is absolutely no scope for diverting the funds, for non-charitable purposes by invoking these words. The reason is that "such other activities" refer only those activities which are discussed in the preceding paras. It does not give opportunity to the assessee to alter the basic character of the object listed in the memorandum. 5.7 We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... net surplus income of the trust properties in the construction of the new Dharamshala even if it exceeded 25 per cent of the net income of the trust properties could not be said to be application to purposes other than charitable purposes of the trust. We find that this decision buttresses the contention raised by Shri Malik. 5.12 Inthe case of Mahakoshal Shaheed Smarak Trust the Hon'ble High Court has held as under:-- "It cannot be laid down as an infructuous rule of law that no memorial can be of general public utility. The whole thing depends upon the nature of memorial. If a memorial is stipendous wholly useful for the general public for social and cultural activities or a library, garden and surrendered part for the benefit of the public, it is difficult to hold that the memorial is not of general public utility. In order to take a trust outside section 2(15) the activity for profit must be intertwind or wrapped with or implied for the purpose of the trust or in other words it must be an integral part of such purpose. Where the pre-dominant object of the activity of the trust, carrying out of the object of general public utility and not to earn profit, it would not lose it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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