TMI Blog1998 (5) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... in entering a finding that the object of the trust is only to spend money for the propagation of a particular type of religion and for the services of its followers ? Held that:- The authorities under the Act including the Appellate Tribunal minutely examined various terms of the trust deed and found that for all intents and purposes the object of the trust was to propagate a particular religion and to render service to the followers of that religion, particularly, with reference to the families who created the trust. The assessee, therefore, could not be considered for exemption, being a private trust, set up to promote a particular religion whose agricultural income does not enure for the benefit of general public. It was also found t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 4 in favour of the Revenue and against the assessee-trust. - C.A. 3020 OF 1986 - - - Dated:- 8-5-1998 - Judge(s) : D. P. WADHWA., MS. SUJATHA V. MANOHAR JUDGMENT The judgment of the court was delivered by D. P. WADHWA J.---The State of Kerala in this appeal is challenging the judgment dated February 6, 1986 (see [1987] 164 ITR 766), of the Division Bench of the Kerala High Court holding that M.S.P. Family Jain Trust ("trust" for short), of which the respondent is the president, is exempt from payment of tax on its agricultural income under section 4 of the Kerala Agricultural Income-tax Act, 1950 ("Act" for short), as amended by Kerala Act 9 of 1974. The High Court in its impugned judgment reversed the findings of the author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that section 4 of Act 22 of 1950 as amended by Act 9 of 1974 is applicable for the assessment of the tax for the accounting year 1973-74 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that since the object of the trust being propagation of Jain religion and the service of its followers, the trust is not entitled for the claim of exemption from tax under section 4 as it stands after the amendment of the Act by the Act 9 of 1974 ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that even the amount spent in this State in furtherance of the objects of the trust cannot be treated as allowable items of expense ? and (4) Whether, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Act, the total agricultural income of any previous year of any person comprises all agricultural income derived from land situated within the State and received by him within or without the State, but does not include----........ (b) any agricultural income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in the State ; (c) any agricultural income derived from property held under trust in part only for such purposes, to the extent to which such income is applied to such purposes in the State.. (3) Nothing contained in clause (b) or clause (c) of sub-section (1) shall operate so as to exclude from the total agricultural income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public trust or a private trust. That being so section 4(1)(b) and section 4(1)(c) were not applicable to the assessee-trust. The authorities under the Act including the Appellate Tribunal minutely examined various terms of the trust deed and found that for all intents and purposes the object of the trust was to propagate a particular religion and to render service to the followers of that religion, particularly, with reference to the families who created the trust. The assessee, therefore, could not be considered for exemption, being a private trust, set up to promote a particular religion whose agricultural income does not enure for the benefit of general public. It was also found that most part of the agricultural income was spent for se ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
