TMI Blog1978 (3) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... Charitable Trust, Mangalore. The assessees were treated by the income-tax department as charitable trusts entitled to the benefit of exemption under s. 11 of the I.T. Act, 1961 (hereinafter referred to as " the Act "), till the assessment year 1968-69. But in the year 1969-70, the ITO took the view that as there was no charitable trust in existence they were not entitled to the exemption contemplated under s. 11. The assessees preferred appeals before the AAC of Income-tax. He reversed the decision of the ITO and held that they were charitable trusts entitled to the benefit of s. 11. The department took up the matter in appeal before the Income-tax Appellate Tribunal, Bangalore Bench. The Income-tax Appellate Tribunal dismissed the appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rical monuments of common interest or religious or cultural institutions. (g) To construct buildings for schools, hostels, sanatoriums, etc., and donate them to Government, quasi-Government institutions or public bodies or run them under the management of the trust. (h) To create endowments for doing research work in all branches of science and learning." Clause 8 in each of the deeds reads : " 8. As it is the desire of the author of the trust that the trustees shall endeavour to augment the trust fund, the trustees are hereby empowered to enter into partnership with any person or persons and also to engage in all such trades or business as agents or otherwise as they deem proper." It is contended on behalf of the department that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to the last category, viz., of " advancement of any other object of general public utility ". In Sole Trustee, Loka Shikshana Trust v. CIT [1975] 101 ITR 234 (SC), Khanna and Gupta JJ. left the above question open with the following observations : " It is, in our opinion, not necessary to express an opinion in this case on the question as to whether the words ' not involving the carrying on of any activity for profit ' qualify the fourth object, viz., the advancement of any other object of general public utility or whether they also qualify the other three objects of relief of the poor, education and medical relief, because we are of the view that the object of the appellant-trust was not education but any other object of general publ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommerce v. CIT [1975] 101 ITR 796 that the decision of this court in the case of A. L. N. Rao Charitable Trust [1976] 102 ITR 474 (Kar) required to be reconsidered. We do not think that the decision in Indian Chamber of Commerce's case [1975] 101 ITR 796 (SC) has in any way unsettled the view taken by this court. In the case of A. L. N. Rao Charitable Trust [1976] 102 ITR 474 (Kar) the object clause was similar to the object clauses in these two cases. The objects of the Indian Chamber of Commerce as can be seen from the facts narrated in the decision were those falling under the fourth category, namely, advancement of any other object of general public utility. The Supreme Court had occasion to notice and consider the effect of the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian Chamber of Commerce [1975] 101 ITR 796 (SC). Hence, no assistance can be derived by the department from that case. We feel that there is no justifiable ground to take a view contrary to the view taken by this court in the case of A. L. N. Rao Charitable Trust [1976] 102 ITR 474 (Kar). The first three objects in s. 2(15), namely, relief of the poor, education and medical relief are by themselves considered as charitable purposes and there was no need to qualify them. Because Parliament was introducing into the definition of " charitable purpose " a new category of a general nature, namely, " advancement of any other object of general public utility ", it added the qualifying words appearing in the last clause to prevent adventures of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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