TMI Blog1984 (2) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... i) of clause 4 of the trust deed was of non-charitable nature and, therefore, it could not be termed as wholly for charitable or religious purposes. As a result, the respondent was denied exemption under s. 1l(1)(a) of the I.T. Act, 1961 (hereinafter called " the Act "), and the entire receipts of the trust were subjected to tax in accordance with the provisions of s. 164(1) of the Act. The said sub-clause (vii) of clause 4 of the trust deed reads as under : " To render monetary help to any person for his personal needs or for the needs of the members of his family as may be decided by the trustees." An appeal was taken to the AAC by the respondent-trust. The said authority, vide its order dated June 23, 1975, came to the conclusion that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... works of natural art and natural history or other useful subjects. (iii) To establish, promote or render aid to schools and educational institutions for the spread or development of technical and/or commercial education. (iv) To maintain or grant aid to poor deserving students and grant scholarships, stipends, prizes, medals, et cetera and to supply books free of cost or at concessional rates to students, teachers and other persons. (v) To provide medical aid and relief to the suffering people by aiding, establishing and/or maintaining hospitals, medical schools and colleges, dispensaries, nursing homes, babies homes, clinics, sanatoriums and other institutions meant for rendering medical relief. (vi) To establish, support, mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articular words in which the request, etc., is expressed, but having regard to any surrounding circumstances which may legitimately be taken into consideration; and this is so notwithstanding that there may be a decision to the contrary effect upon words more or less similar." In the instant case, the proviso added to the objects of the trust clearly indicates that in case either of the objects of the trust is held not to be an object of public or charitable nature, the trustees shall not carry out such an object and in that contingency the validity of the trust created as trust for, public and charitable purposes shall not be affected in any manner : In Dharmaposhanam Co. v. CIT [1978] 114 ITR 463 (SC), it was observed (p. 470): "Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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