TMI Blog1985 (7) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... tors. beneficiaries and the objects vide rules dt. 28th Nov., 1953. There was doubtless some correspondence and adjudication before the Charity Commissioner. This decision was, however reversed by the judgment of the Dy. Charity CIT dt 3rd Feb., 1979. The view was upheld by the Charity commissioner who framed certain rules. These rules are however not relevant for the purposes of these appeals. As far as the factual position of the valuation date is concerned, Shri Sathe contended that the beneficiaries of the fund do not form a cross section of the public identifiable with and impersonal or public character. The beneficiaries are the employees of a particular group of the Co-operative Department and posited within the Solapur to be a benef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... athe however. contended that certain aspects have not been considered that certain aspects have not been considered in the Andhra Pradesh High Court judgment. Firstly relying on Merchantile Bank of India (Agency) Ltd., in re (1942) 10 ITR 512 (AP) Shri Sathe contended that a Trust having a floating body of employees is violative of the rules against perpetuity and hence void. We do not, however, propose to examine the issue further because if the trust is void no further question would arise here and there might be resultant Trust in favour of settler with which we are not concerned. Shri Sathe referred to J. K. Hosiery Factory vs. CIT U. P. (1970) 81 ITR 557 (All) where at page 575 it has been held that workmen in general is not a denefini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also referred to the Tribunal decision in the case of Armed Forces Fund, Taxation, Vol. 38 s. 6, page 95. He further referred to CIT vs. Bengal Mills Steamers Presbyterian Association (1981) 24 CTR (Cal) 318 : (1981) 140 ITR 586 (Cal). That was a case of society floated with the object of supplying and maintaining institutions and diffusion of useful knowledge and maintain the ordinances of religion among the European establishments in Bengal, and amongst the European officers and crews of vessels visiting the Port of Calcutta and the fostering of religious interests and activities among the same. According to Shri Doshi the point to be noted is regarding the class of beneficiaries who were considered as representing public. Shri Doshi fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar class or classes. It may often be that a non-government employer makes recruitment on a much broader basis than the Govt. which often imposes restriction regarding residence, class etc. As far as recruitment to government services is concerned, it has to be assumed that it is open to all public who answer essential and desirable qualification mentioned for the purpose. The beneficiaries of the assessee fund are therefore, persons who have become employees by reason of their being a member of the public. We have therefore no material to depart from Andhra Pradesh High Court judgment in Taxation, Vol. 38, s. 6, page 95 referred to above. 9. Coming now to reliance on S. K. Dutta, ITO vs. Lawrence Singh Ingty (1968) 68 ITR 272 (SC) by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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