TMI Blog1984 (2) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 section 11 of the Income-tax Act, 1961. The Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, 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 deed. The objects set out in the trust deed are two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 former case the income will clearly be exempt, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 business of printing press which was run by the found ..... X X X X Extracts X X X X X X X X Extracts X X X X
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