1989 (1) TMI 39

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....the assessee, is a public charitable trust and it has several objects but we are concerned, for the decision of this reference, only with the following two objects : " (i) To carry on the business of the present Krishna Tent House at Bhiwani and to open, start and carry on any other variety of business, the profit whereof shall be wholly and solely applied for the purposes of the trust. (j) To d....

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....he Appellate Assistant Commissioner upheld the order of the Income-tax Officer, but on further appeal to the Income-tax Appellate Tribunal, Delhi, relief was granted to the assessee exempting the income of the firm, following the later decision of the Supreme Court in Dharmadeepti v. CIT [1978] 114 ITR 454, that the purposes of the trust in clauses (i) and (j) reproduced above are the purposes of ....

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....n view of Indian Chamber of Commerce's case [1975] 101 ITR 796 (SC) and Sole Trustee, Loka Shikshana Trust's case [1975] 101 ITR 234 (SC), but later on, in Dharmadeepti's case [1978] 114 ITR 454 (SC), a contrary view was taken. The Constitution Bench in Surat Art Silk Cloth's case [1980] 121 ITR 1 (SC), considered all the earlier judgments and followed the decision rendered in Dharmadeepti's case ....

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....21 ITR 1): "Where, therefore, the purpose of a trust or institution is relief of the poor, education or medical relief, the requirement of the definition of 'charitable purpose' would be fully satisfied, even if an activity for profit is carried on in the course of the actual carrying out of the primary purpose of the trust or institution." Relying on the aforesaid view of the Constitution Bench....