1998 (7) TMI 7

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....MHA BABU J.---The questions referred to us at the instance of the Revenue are : "(1) Whether, on the facts and in the circumstances of the case and having regard to the provisions of section 2(15) of the Act, the Appellate Tribunal was right in holding that the assessee is a charitable institution and that its income is exempt under section 11 of the Act ? (2) Whether, on the facts and in th....

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.... on business for profit, namely, exhibition of pictures, has been called into question by the Revenue in this reference, relating to the assessment years 1974-75 to 1976-77. The trust known as Nahata Charitable Trust was created under the deed dated September 19, 1969. A perusal of the object clause shows that the objects of the trust are to promote the relief of the poor, advancement of educat....

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....The only ground on which the exemption was denied by the Assessing Officer was that the trust had entered into an agreement with one Vijayalakshmi Pictures and that agreement resulted in the trust undertaking a business activity. As held by the apex court in the case of Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1 and in the case of Thiagarajar Charities v. Addl. CI....