Charitable society exemption under section 11(1)(a) cannot be denied solely because it is not a trust.

A charitable society registered under the Societies Registration Act and section 12A may claim exemption under section 11(1)(a) where the income is derived from property held under trust; the exemption is not confined to entities formally constituted as trusts if the statutory conditions are otherwise met. The Court treated societies and trusts as falling within the Act's broader concept of persons and held that denial of exemption merely because the assessee was a society was unwarranted, subject to factual verification of expenditure.

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Issues: Whether a charitable society or institution registered under the Societies Registration Act and under section 12A of the Income-tax Act, 1961 can be denied exemption under section 11(1)(a) merely because it is not a trust.

Analysis: The expression used in section 11(1)(a) is income derived from property held under trust. The decisive requirement is that the property must be held under trust, and the exemption is not confined only to entities formally constituted as trusts if the statutory conditions are otherwise satisfied. The Court also noted that, for the purposes of section 2(31), both societies and trusts may fall within the broader category of persons covered by the Act. In that view, the issue did not give rise to a substantial question of law.

Conclusion: The assessee was entitled to claim exemption under section 11(1)(a) despite being a society or institution and not a trust, subject to factual verification of expenditure.

Final Conclusion: The revenue's challenge to the grant of exemption failed, and the appeal was dismissed.

Ratio Decidendi: Exemption under section 11(1)(a) depends on income derived from property held under trust, and is not denied merely because the assessee is organised as a society or institution rather than as a formally constituted trust.

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