TaxTMI 
TaxTMI 
TaxTMI 
2007 (9) TMI 229
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....s of the case, the Tribunal was justified in holding that even if there is some miscarriage on account of breach of trust by the trustees, the benefit of section 11 cannot be denied if such miscarriage does not affect the vires of the validity of the trust? 3. Whether, in the facts and circumstances of the case, the Tribunal was justified in holding that the assessee fulfilled all the conditions laid down in section 11 of the Act to claim the benefit of section 11 of the Act ?" 2. The facts of the case, which are relevant for answer the questions of law, are as under. 3. The assessee is M/s. Karimia Trust, Jamshedpur. The assessee-trust was created by the last Hussainy Tafazul Karim of Jamshedpur under a registered deed dated May 6, 1945....
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....also held that the assessee has violated the provisions of section 13(1)(c) of the Act because it has rented out the two cinema halls to one M/s. Kapur Chand Private Limited which, in their turn, gave the management and exhibition of films to one M/s. Ruhee Enterprises of Jamshedpur. The Assessing Officer further held that the assessee is not managing the trust properly. 5. Aggrieved by the said order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) who reversed the order of the Assessing Officer in the light of the previous order. The appellate authority proceeded on the basis that section 13(1) (bb) speaks about charitable trust only, whereas the assessee is a charitable-cum-religious trust. The appellate....
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....amshedpur. In that trust deed, complete details and the scheme of the management for disposal of the trust income have been incorporated. By the said deed, two cinema halls, namely, Jamshedpur Talkies and Karim Talkies, with its goodwill including the buildings, machineries, fixtures and fittings, etc., were settled with a right to carry out cinema business. As per the trust deed, income derived from those properties was to be used to accommodate the religious as well as charitable purposes. 8. It is worth to be noted here that in all the assessment proceedings from 1969 onwards, the character and objects of the trust were not disputed and had always been accepted by the Assessing Officer. It was for the first time the Assessing Officer de....
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....gious community or caste; (bb) in the case of a charitable trust or institution for the relief of the poor, education or medical relief, which carries on any business, any income derived from such business, unless the business is carried on in the course of the actual carrying out of a primary purpose of the trust or institution; (c) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof— (i) if such trust or institution has been created or established after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or (ii) if any part of such income or any property of the trust or institution (w....
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....above, in all assessment proceedings from 1969 onwards the character and objects of the trust were not disputed and had always been accepted by the Assessing Officer, the Commissioner of Income-tax (Appeals) and up to the Tribunal. 13. At the very outset, we deprecate the attitude of the Assessing Officer in 13 passing comments against the appellate authority and the Tribunal by holding that the Appellate Tribunal or the Tribunal has not correctly appreciated the concept of charitable-cum-religious trust. The Assessing Officer cannot sit over the finding recorded by the appellate authority or by the Tribunal. Both the appellate authority and the Tribunal fully dealt with the matter at length and in the appeal against the assessment order f....