1989 (4) TMI 39

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....HI J.-The assessee, Gandu Mal Dharam Arth Trust, claims to be a charitable trust and thus entitled to exemption under section 11 of the Income-tax Act, 1961. The record shows that the assessee-trust is said to have been originally founded by one Giano Devi, wife of Gandu Mal, in 1944. As the trust deed was not forthcoming, another trust deed was drawn up and executed on December 12, 1960. Smt. ....

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....y on all round welfare of the human race, particularly sufferers on account of earthquakes, floods, etc. The trust deed further provided that it would be the duty of the trustees to invest the trust funds wholly or in part in some business. It was in pursuance of this clause that the trustees came to acquire the business known as Amrit Ice and General Mills, Rohtak, and this business thereafter....

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....en dedicated for this purpose: (iv) The cash amount of the trust will remain in the custody of the legal representatives of L. Gandu Mal who are also the trustees of the trust and they will be responsible for paying interest at 6 per cent. per annum on the amount with them to the trust fund; (v) It shall be the duty of the trustees by the opinion of the majority to invest a part of the trust....

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....r cent. per annum and not at the market rate as is prevalent from time to time. It is, taking these aspects of the matter into account, that the Tribunal declined to grant exemption under section 11 of the Act as claimed by the assessee and this is what has now led to the following question being referred for the opinion of this court: "Whether, on the facts and in the circumstances of the c....