TaxTMI 
TaxTMI 
2009 (7) TMI 358
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....-trust is exempt on the interpretation of the provisions of sub-section (4A) of section 11 of the Income-tax Act, 1961 ?" 2. Briefly stated the facts giving rise to the present reference are as follows: 3. The reference relates to the assessment years 1990-91 and 1991-92. 4. Dr. Ashwani Kumar, a Professor of Mathematics of I. I. T. Kanpur, formed a trust under the name and style of M/s. Brihdaranyak Mandal (Trust), Kanpur, with a sum of Rs. 11,000 through a trust deed dated January 25, 1988. The aims and objects of the trust were to educate the general masses about the ancient glory and cultural heritage of the country, to acquaint them with nature and environment, to impart them with Vedic education and to work for the spiritual u....
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.... by Dr. Ashwani Kumar in his individual capacity. It was also held that the income was not exempt under section 11 of the Act since it was earned from business and the provisions of section 11(4A) were applicable. A protective assessment order was passed in the case of the assessee-trust after denying exemption under section 11 of the Act. On substantive basis the income was assessed in the hands of Dr. Ashwani Kumar, the founder of the trust. In appeal, vide his order dated December 29, 1992, the learned Commissioner of Income-tax (Appeals) held that the trust was valid but its income could not be exempted under section 11 of the Act because it was hit by sub-section (4A) of the said section. Against this order of the Commissioner of Incom....
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....see-trust to start educational agencies for earning income to achieve the aims and objects of the trust. We have noticed that some donations came to the trust in the assessment year 1989-90 amounting to Rs. 1,22,727 (including Rs. 11,000 settled by Dr. Aswani Kumar). However, thereafter, this source dried up. It is to the credit of Dr. Ashwini Kumar that he took it upon himself to bring in funds by setting up Logarithmica Educational Agency. This agency was not for his personal benefit and was set up in pursuance of minutes approved in a meeting of the trustees on September 3, 1989, as recorded by the Commissioner of Income-tax (Appeals) in the assessment year 1990-91. We have also seen from the accounts that the entire surplus was transfer....
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....tural heritage of the country to acquaint with nature and environment, to impart them with Vedic education and to work for the spiritual upliftment of masses in general leading them to involve in social welfare activities. We agree that these are 'advancement of any other object of general public utility and, therefore, constitute charitable purpose within the meaning of the expression in section 2(15) of the Act." 9. We have heard Sri A. N Mahajan, learncd standing counsel for the Revenue and Sri Amitabh Agarwal, learned counsel for the respondent-assessee. 10. Sri Mahajan invited the attention of the court to the findings recorded by the assessing authority wherein he has held that the activity of Logarithmica Educational Agency was....