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TMI Blog1992 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ovide a building for the benefit of the public to be used for religious, charitable, cultural and social purposes. She contributed Rs. 34,000 to the trust fund. With that fund, a plot of land was purchased and the construction Was begun. The fund was augmented by her son, Seetha Rama Rao, from his own contributions as well as from outside donations. The building was completed, at a cost of about Rs. 6 lakhs. Ever since the construction of the building, it is being let out as a marriage mandapam to be used by the members of the public as such. The income derived from letting out the Kalyana Mandapam came to Rs. 1,06,392 in the year ending March 31, 1963. For the subsequent years also, the income was substantial. The trust was also running a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Income from property held for charitable or religious purposes. - (1) Subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income (a) income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India . . ." The above-quoted provisions make it clear that a trust has to satisfy the following conditions in order to claim the benefit of section 11(1)(a) of the Act..." (1) The income is derived from property held under the trust. (2) The trust is wholly for charitable or religious purposes. (3) The exemption is permissible to the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ember 9, 1957, for the express purpose of constructing a building thereon and dedicating the same for use by the public, inter alia, for religious, charitable and cultural purposes and doth hereby create an irrevocable trust of the said property for the purposes aforesaid." " The settlor further declares that immediately after such purchase she, the settlor, relinquished all her rights thereto and dedicated the said plot of land for the use of the public for the purposes abovementioned and put the said plot of land in the possession of her son, Shri K. Seetharama Rao, with a direction to construct a building thereon for the use of the public for religious, charitable, social, cultural and other allied purposes. " "That the trust property, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the benefit of the public for being used by them for religious, charitable, cultural or social purposes. We cannot read the contents of the above-quoted paragraphs as the objects of the trust ; these are only the objects of those who wish to put the trust property to use. On a careful consideration of the language of the trust deed, we are of the view that the intention of the founder was to provide a building for the benefit of the public to be used by them for religious, charitable and/or cultural and social purposes. It is nowhere stated in the trust deed that the trust itself has been created for the purpose of carrying out any of such objectives. The holding and conducting of religious discourses and the running of schools for the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial counsel for the Income-tax Department and, in the said opinion, the Department was advised to go to the High Court by seeking a reference. It was also opined that the trust was ineligible for the exemption for the reasons which were given therein. It is further mentioned in the special leave petition that the petitioner came to know about this aspect only after the judgment was pronounced on December 17, 1980. None of the parties brought this aspect to the notice of the learned judge at the hearing or at any time before or after the conclusion of the hearing. Mr. Parasaran contends that it would be in the interests of justice if the matter be remanded to the High Court for rehearing. We are not inclined to agree with learned counsel. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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