2011 (1) TMI 179

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....assessee is a trust formed with object of education, relief to the poor, medical relief and the advancement of other objects charitable or general public utility not involving the carrying on of any activity for profit. In particular, Clause 4(a) reads as under : "4(a) To establish, maintain and run educational institutions for the benefit of all sections of the people, irrespective of caste, creed or colour of such kinds as the Trustees deem proper for imparting general, technical or professional knowledge and to afford financial or other assistance to such institutions." 3. It is in pursuance of the said object, for the assessment year 1999-2000, they have given donations of Rs. 5,00,000 to TTD Devasthanam, Tirupathi and Rs. 1,25,00....

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....ent order directing the assessee to pay the income-tax as mentioned in each of these orders. Aggrieved by the same, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals), Hubli. The Appellate Authority re-appreciated the entire material on record and looked into the objects of the trust of the assessee. He held that the trust has applied its donations received for the objects of the trust and therefore, eligible for exemption under section 11 of the Act. Accordingly, he set aside the assessment orders. Aggrieved by the same, the revenue preferred an appeal to the Appellate Tribunal. Again, the Appellate Tribunal reconsidered the entire material on record, looked into the terms of the trust deed and came to the con....

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....wever, it is important to note that the trustees are authorized by the trust to spend money for the establishment, maintaining and running educational institutions for the benefit of all the sections of the people and for imparting general professional, technical knowledge. It authorizes the trust to extend financial or other assistance to such institutions. Therefore, the clause in the trust deed is unambiguous. There is no scope for any confusion. Not only the trust carries on charitable purpose, but it also extends assistance to such institutions carrying on these charitable purpose. It is not in dispute that all the donees who are carrying charitable activities are exempted under section 80G and which is renewed every year. If those don....