1966 (8) TMI 22

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....) of the Indian Income-tax Act, 1922. 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....

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....e details of the trust concerned for it has been 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 tr....

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....able purposes. On the said reading of the provision 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 ab....