TMI Blog1989 (7) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... of the trust enures to the public at large and not to any particular religious community ?" The respondent is an assessee to income-tax. It is a trust. It claimed exemption under section 11 of the Income-tax Act, 1961, for the assessment year 1976-77. The trust deed is dated April 14, 1975. It was claimed that there was a clarificatory resolution regarding the trust deed, dated April 20, 1975. The Income-tax Officer held that the assessee is not entitled to the benefit of section 11 of the Income-tax Act. In appeal, the Appellate Assistant Commissioner, by order dated October 13, 1981, held that the object of the trust is for constructing Shadi Mahal which involves an activity of profit, that it is for a particular religious community, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne 23, 1989, directed the Income-tax Appellate Tribunal to forward the relevant or appropriate resolution of the Trust Board dated April 20, 1975, relied on by the Appellate Tribunal in its appellate order dated July 6, 1983. Accordingly, the Income-tax Appellate Tribunal has, by communication dated July 4, 1989, forwarded annexure-C which purports to be the clarificatory resolution of the Trust Board dated April 20, 1975. We perused the copy of the trust deed dated April 14, 1975 (annexure-B) as also annexure-C, copy of the proceedings of the special general body meeting of the Shadi Mahal Trust dated April 20, 1975. The main thrust of the argument by the Revenue was that the trust is not entitled to the exemption under section I 1 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trustees to spend a, considerable portion of the income for development of the Shadi Mahal and for other religious and charitable purposes. It is further stated that this is not a case where the trustees have a discretion to spend all or the entire income for any one of the purposes to the exclusion of all other purposes mentioned in clause (x) of the deed. The main object of the trust is to construct the Shadi Mahal and also to spend the income for other religious and charitable purposes. It is stated that the obligation to establish other institutions for the educational, social and economic advancement of Muslims is only ancillary or incidental to the said purposes. In advancing this argument, counsel for the assessee laid stress on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deed. Larger questions arise for consideration : Should the various enacting clauses in the deed be understood only in the light of the preamble or should the preamble be considered along with other clauses ? Is there any ambiguity in clauses (x) and (xxv) of the deed which calls for any aid from the preamble ? Are there inconsistent clauses in the deed or any ambiguity in the deed which calls for interpretation ?, What is the principle to be adopted in interpreting the various clauses in the deed ? Is it open to the assessee to clarify the trust deed and more particularly on the basis of the resolution passed on April 20, 1975 ? If so, to what extent and in what manner ? What is the corpus of the trust ? What is its object ? What are the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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