TMI Blog1975 (6) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... r is the financial year 1959-60. The assessee settled on trust certain properties by an indenture of trust dated December 24, 1947. The supreme object of the trust was to effect revival by spreading and giving currency to the Karma Marg mingled with Bhakti as substantiated by Shri Dnyaneshwar Maharaj and to the Tatwadnyan as expounded in Dnyaneshwari with the intention of annihilating the decline that had set in religion. The trust was to establish at the holy place of Alandi the institution of Shri Dnyaneshwar Vidyapeeth and propaganda centres in Maharashtra, the whole of India and, if necessary, in foreign countries to accomplish its objects. The particulars of this charitable trust are specially to be found in clause 6 of the indenture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax. It is against this order passed by the Tribunal that the revenue has asked for the present reference. Mr. Joshi, on behalf of the revenue, has contended that since it is possible for the trust fund to give help to poor members of the family of the settlor in the manner indicated, the income of the trust cannot be regarded as exempt under section 4(3)(i). He submitted that making of a provision for giving financial aid to the members of the family of the settlor will indicate that the income of the trust cannot be regarded as exempt under the said section. Under section 4(3) of the Indian Income-tax Act, 1922, any income, profits or gains falling within the various classes following shall not be included in the total income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) the relief and benefit of the poor and indigent members of Jewish or any other community of Bombay or other parts of India or of the world either by making payments to them in cash or providing them with food and clothes and/or lodging or residential quarters or in giving education including scholarships to or setting them up in life or in such other manner as to the said trustees may seem proper or (b) the institution, maintenance and support of hospitals and schools, colleges or other educational institutions or (c) the relief of any distress caused by the elements of nature such as famine, pestilence, fire, tempest, flood, earthquake or any other such calamity or (d) the care and protection of animals useful to mankind or (e) the adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poor members of the family of the settlor and their descendants. Construing the trust properly this is only a desire and no fetter is placed upon the power of the trustees to utilise the income of the trust for charitable purposes. Even a direction is not given to give preference but simply a desire is expressed. When such is the case then the facts in the present case are even stronger than those in the Supreme Court case above referred to and, in our opinion, the Tribunal was right in taking the view that the income of the trust was exempt under section 4(3)(i) of the Act. Accordingly, the question referred to us is answered in the affirmative and in favour of the assessee. The revenue shall pay the costs of the assessee. - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
