TMI Blog2001 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... peals by the Revenue arise upon a certificate of fitness given by the High Court of Kerala ([1999] 236 ITR 722). The High Court answered in the affirmative and in favour of the assessee-trust the following question: "Whether, on the facts and in the circumstances of the case, the assessee is a charitable institution whose income is exempt under section 11 of the Income-tax Act, 1961?" The assessee-trust is a public charitable trust. It was constituted under a trust deed dated April 14, 1975. The settlors of the trust were certain Muslim residents of Kerala. They constituted the trust 'for the purpose of constructing and establishing at Palghat a Shadi Mahal and other institutions for the educational, social and economic advancement of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste." The second Explanation to section 13 reads thus: " Explanation 2. -A trust or institution created or established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or women and children shall not be deemed to be a trust or institution created or established for the benefit of a religious community or caste within the meaning of clause (b) of sub-section (1)." It is an admitted position that in the State of Kerala the Muslims are notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but an attempt to alter the object of the trust deed, which is not contemplated by the said clause (xiv) and is impermissible except by means of an amendment of the trust deed by the settlors. It was also contended on behalf of the trust that the trust enures only for the benefit of the residents of the locality and is so used and, therefore, the income of the trust is saved by the second Explanation to section 13. This contention also ignores the object of the trust which we have set out above. There is no limitation in the trust deed in regard to which Muslims can avail of the benefit of the trust. The benefit is available to Muslims from all over the world, none of whom, except in Kerala, are of backward classes. It is, there fore, not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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