9911796707
TMI Blog1984 (2) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, Madras: "Whether, on the facts and in the circumstances of the case, the Tribunal's finding that the business was held under trust and accordingly the sum of Rs. 18,628 is exempt under section II is valid in law ? The assessee is a trust and for the year 1974-75 it filed a return admitting an income of Rs. 17,690, after claiming exemption in a sum of Rs. 18,628 spent on charity under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. Aggrieved by the view taken by the Tribunal, the Revenue has sought and obtained a reference on the question set out above. It has been found by the Tribunal that the founder of the trust was running a printing press and by a deed dated September 23, 1946, he had endowed the said printing press as a trust and the income of the trust was to be spent on the objects set out in the trust de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no question of the object of the trust being one to carry on any activity of profit. The Tribunal has followed the decision in CIT v. Madras Stock Exchange Ltd. [1976] 105 ITR 546 (Mad) wherein a distinction has been made between a business being held under trust, whose profits feed a charity and a business being carried on as the object of the charity. According to the said decision, in the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he definition of "charitable purpose " in section 2 (15) of the Act and held that once it is found that the business itself was held under a trust for religious or charitable purpose, then the trust cannot be treated as having undertaken a business activity in order to advance any object of general public utility, which will take it out of the purview of section 11. In this case also, the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
