TaxTMI 
TaxTMI 
2002 (2) TMI 55
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....under an interim award of the arbitrator appointed in a partition suit, O.S. No. 70 of 1051 on the file of the Sub-court, Ottapalam. That was a suit filed by some members of the Kizhakke Kovilakam branch of the royal family of the Zamorin of Calicut for partition of the properties of their branch. An arbitrator was appointed for settling all disputes between the parties. The assets of the Kovilakam included seven temples and one High School called Raja's High School. The members of the Kovilakam decided to preserve the same. The members of the Kovilakam had unanimously taken a decision to preserve the seven temples and the High School by creating a private family trust and a scheme was framed for the proper administration of the temples and....
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....rties compulsorily acquired attracted capital gains tax and that the interest earned on deposits of the compensation was assessable income in the hands of the appellant, the assessing authority initiated proceedings against the appellant and issued notices under section 148 of the Income-tax Act. The appellant filed returns showing fully and correctly the receipts of the various periods from the accounting years relevant to the assessment years 1985-86 to 1995-96, both inclusive and claimed exemption under section 11 of the Act on the basis that the appellant was a public religious trust engaged in the activities of maintenance and management of the seven public temples enuring for the benefit of the public. The assessing authority, howe....
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....i P.K. Raveendranatha Menon, learned senior counsel appeared for the Department. Sri P.G.K. Warrier took us through the various provisions of the interim award and contended that the temples and High School were for public benefit. He contended that the temples are very old and the public are participating in the functions of the temples. He also invited us to the fact that the temples are not to be usually small temples, but are very big in size, which reflect the public nature of the temple. He also cited before us certain decisions of the Supreme Court, which differentiated between the private temples and public temples. It was the further contention that amount from the trust properties are not used for any other purpose, but only fo....
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..... Then sub-clause (2) of clause (4) says that the property described in the Eighth Schedule is set apart for the school. Clause (5) mentions the trustees. The trustees are members of the family. Clause (7) says that the trust will be governed in accordance with the scheme. Clause (8) deals with trustees' representatives. It clearly states that the representatives should be only from the members of the Kovilakam. In clause (15)(2), it is stated that if for any reason, the school is stopped or is acquired by the Government, the entire income from the school property shall be made use of for the purpose of the temples. Thus, on going through the trust, we are satisfied that it is only a private family trust that is created. It is not a publ....