1982 (2) TMI 43

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....r trust called Lakshmi Nath Seva Trust. While the ITO scrutinised the statement filed, he came across this item. According to him, this Lakshmi Nath Seva Trust was a private trust. He observed that the assessee could not prove that the donation was for any public charitable or religious purpose. He, therefore, taxed the sum of Rs. 10,850 at the maximum rate. Before the AAC, on appeal, the assessee contended that the donation to the trust was made under the belief that it was a charitable trust and that if a donation was made in good faith, it could not be said that the money had been applied for non-charitable purposes. In the alternative, it was pointed out that in the case of Shri Lakshmi Nath Seva Trust the AAC had held, in his order ....

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....Tribunal on February 8, 1961, held, when certain amounts were transferred to the accounts of the trust, that it could be said that the trustees held the amount for religious or charitable purpose and that the exemption under s. 4(5)(i) in respect of the income of the said trust would come into operation as on that date. It is the conclusion regarding the nature or character of the said trust which was followed in the order under reference. The Tribunal, on the present occasion, could not go into the question as to whether the terms of the Lakshmi Nath Seva Trust deed were in any manner void or uncertain as the trust deed was not before it in the present occasion. In those circumstances, the following question has been referred to us "....