1973 (7) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on 66(1), of the Income-tax Act, 1922 (hereinafter referred to as " the Act "), at the instance of the revenue. The question referred for our determination is : " Whether having regard to the terms of the constitution of the assessee-association the properties of the assessee-association are held under trust or other legal obligation so as to qualify for exemption under section 4(3)(i) ? " T....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....wn in clause 9 of the constitution. Clause 18 of the constitution is as under : "18. To carry out the objects of the Parishad, the standing committee can raise funds and accept donations, presents, charities, etc., and will have power to administer them. " It may be stated at the outset that neither before the Income-tax Officer nor at the stage of appeal before the Appellate Assistant commi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....held under trust or other legal obligation as contemplated by section 4(3)(i) ? It is now well-settled that a formal deed of trust is not absolutely essential in order to come to a conclusion that any particular property is held under trust or other legal obligation. It will be useful in this connection to refer to the observations of the Privy Council in All India Spinners' Association v. Commiss....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee bind not only the standing committee and the managing committee but they equally bind every member of the assessee. In view of the provisions of clause 18 of the constitution, even counsel on behalf of the revenue found it impossible to urrge that it will be open either to the standing committee or the mananging committee or even the members of the assessee to use the property of the a....