1966 (8) TMI 22

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..... The questions referred are : " 1. Whether the proceedings under section 34(1)(b) of the Income-tax Act, 1922, for the assessment year 1957-58 are valid ? 2. Whether the proceedings under section 147(b) of the Income-tax Act, 1961, for the assessment years 1958-59 to 1960-61 are valid ? 3. Whether the 40 per cent. of the profits of the business of Arya Vaidyasala payable to the two Thavazhies ....

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....en the subject-matter of the decision of this court and that decision has been upheld by the Supreme Court. The decision of this court is in Commissioner of Income-tax v. Krishna Warriar. It was held therein that the trust is one which will fall under section 4(3)(i) of the Indian Income-tax Act, 1922, and that the business was not carried on by the trustees on behalf of the religious or charitabl....

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....ion it follows that the entire business of Arya Vaidya Sala is held in trust for utilizing 60 per cent of its profits, i.e., a part, of the income, for religious or charitable purposes. The present case, therefore, falls squarely within the scope of the substantive part of clause (i) of section 4(3) of the Act. " It was held that in view of the above conclusion, the second proviso to clause (i) o....