1990 (8) TMI 132

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the respondent-assessee, a trust created by the instrument executed on April 24, 1958, is a public charitable and religious trust and its income is exempt from tax under section 11 of the Income -tax Act, 1961 ?" The assessee-trust was created on April 24, 1958, with the following objects and purposes : "(i) For giving monetary help to poor deserving members of the Vaisya community. (ii) For giving financial help by way of gift, on loan without interest, to enable poor deserving members of the Vaisya community to set up any business, profession or vocation. (iii) For giving financial help in the shape of money, books or otherwise for education (primary, school, college and higher education and technical or non-technical educatio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....it that objects Nos. (iv) and (vi) are not of public charitable nature. At the instance of the assessee, the Appellate Tribunal referred the question about the entitlement of the assessee to exemption under section 4(3)(i) of the Act of 1922, to this court for opinion. This court answered the question in favour of the Department and against the assessee on the ground that if a party concedes a position before the Tribunal, it cannot take different stand before this court in a reference made by the Tribunal. In the assessment year 1970-71, following the earlier decision of the appellate authorities, the Income-tax Officer declared the assessee not to be a trust for religious or charitable purposes and as such not entitled to exemption und....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... To make a purpose charitable, it is not necessary that it should be beneficial to the poor only and what is required is benefit to a section of the public as distinguished from specified individuals. The Supreme Court in the case of Ahmedabad Rana Caste Association [1971] 82 ITR 704, has laid down that, to constitute a charitable purpose, it is not necessary that the object of a trust should be beneficial to the whole mankind or all persons in a State and it is sufficient if the object is for the benefit of a section of the public. After declaring the law as aforesaid, the Hon'ble Supreme Court held that a trust created for the benefit of the Rana community of Ahmedabad is a charitable trust entitled to exemption under section 4(3)(i) of....