TMI Blog2011 (1) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... legal, contrary to law and requires to be set aside - Hence appeals are dismissed in favour of asseesse. - 737, 738, 739, 741,742, 749 OF 2009 - - - Dated:- 25-1-2011 - N. KUMAR, RAVI MALIMATH, JJ. M.V. Seshachala for the Appellant. S. Parthasarathi for the Respondent. JUDGMENT N. Kumar, J. All these appeals are preferred by the revenue challenging the order of the Tribunal upholding the order of the appellate authority granting exemption. The assessee is common in all these appeals and the question of law involved is the same. Therefore all the appeals are heard together and disposed of by a common order. 2. The assessee is a trust formed with object of education, relief to the poor, medical relief and the advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri Krishna Vajra Kavacha Trust R. 4. It is not in dispute that all donees are exempted from payment of tax under the Act, as they are carrying on charitable activities. The Assessing Officer held that the aforesaid donations are not utilised for the objects enumerated in the trust deed. Moreover, there is no clause in the trust deed to donate to other institutions/trusts. As the trust has not utilized the funds for meeting its objectives for which it was established, he proceeded to hold that the donations made by the trust are in violation of its objects clause and therefore, not entitled to deductions. Therefore, he passed an assessment order directing the assessee to pay the income-tax as mentioned in each of these orders. Aggrieved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that there is no clause in the trust deed which permitted the assessee/trust to donate money to the other trusts. Secondly, he contended that the donee trust have not utilized the funds for charitable purpose. This aspect has not been considered by both the appellate authorities and therefore according to him, the impugned order is liable to be set aside. 6. Per contra, the learned Counsel for assessee/trust supported the impugned order. 7. From the material on record, it is clear that the trust was constituted for a charitable purpose. Clause 4(a) makes it clear as to what are the purposes for which the trust is constituted. However, it is important to note that the trustees are authorized by the trust to spend money for the establi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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