TMI Blog1981 (5) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual, economic, social and political conditions of the people in general and with a view to the fulfilment of the above objects and to do the following amongst other things (a) to enlarge, remodel or recondition the existing hall, reading room and library and add to the existing number of rooms. (b) to disseminate knowledge amongst the people by opening libraries and publication of suitable literature including periodicals. (c) to promote education in all spheres including general, technical, social, economic and political education by opening schools. (d) to hold public meetings and study circles, seminars, exhibitions, social and cultural meets. (e) to acquire by purchase or by lease, hire or transfer or take on licence or otherwise any lands, buildings, or other property, movable or immovable, or rights over connected with them. (f) to lease or let out on hire, mortgage, sell, pledge or give on licence or otherwise any lands, buildings, or other property, movable or immovable. (g) to erect building or buildings, workshops or other structures on the land acquired by the Society in any manner. (h) to accept gifts, donations, etc., of any nature whatsoever on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o institute, conduct, defend, compound or abandon any legal proceedings by or against the Society or the board of management through any of the members of the board of management or the honorary general secretary or any other person specially authorised on their behalf ; (l) to refer any claims by or against the Society to arbitration; (m) to provide money for establishing, maintaining and running institutions, libraries, reading rooms, etc., and for all other activities, which may be taken up by the Society for achieving all or any of its objects ; (n) to invest and deal with the moneys of the Society, which is not immediately required, in such manner as it may think fit; (o) to do all acts and things which may be necessary to further the aims and objects of the Society." The Society pleaded that its income was exempt under ss. 11 and 12 of the I.T. Act, 1961, for the assessment years 1962-63, 1971-72 and 1973-74, because the income derived by the Society was from property held under trust wholly for charitable purposes. The objects of the Society were within the definition of the term " charitable purpose " as defined by cl. (15) of s. 2 of the Act. They were for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aning of the definition of " charitable purpose " given in s. 2(15) of the Act. The ITO held that the main objects are such (sic). The Appellate Tribunal, however, thought that the object of the raising of political conditions of the people in general was not such an object. The phrase " political conditions " occurs in the phrase " the raising of the moral, intellectual, economic, social and political conditions of the people in general ". This was sought to be achieved by dissemination of knowledge to the people. In the context, the term " political conditions " do not imply the advancement of any political theory or ideology or thinking of any political party or political leader. The emphasis is on the raising of the tone of the people in general by raising their moral, intellectual, economic, social and political condition. The word " political " is a word of broad meaning. It includes the idea of pertaining to policy or the administration of Government or relating to the management of affairs of a State. In generic sense, it means pertaining to the exercise of the rights and privileges or the influence by which individuals of a State seek to determine or control a public polic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vities of profit so that the income may be utilised in order to achieve the objects which were objects of general public utility. In Yogiraj Charity Trust v. CIT [1976] 103 ITR 777 (SC), Chief justice Ray pointed out thus (p. 782): A clear distinction must be drawn between the object of a trust and the powers conferred upon the trustees as incidental to the carrying out of the object. If the only object of a trust is the construction and maintenance of a swimming bath which is a purpose of general public utility, the fact that the trustees are given the power to supply or sell refreshments to persons who resort to the bath would not make the trust any the less charitable. " The matter has been put beyond doubt by a recent decision of the Supreme Court in Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1 (SC). In that case, it was held that the true meaning of the last ten words in s. 2(15), viz., " not involving the carrying on of any activity for profit " is that when the purpose of a trust or institution is the advancement of an object of general public utility, it is that object of general public utility and not its accomplishment or carrying out ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
