1991 (11) TMI 90

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....hurch" dt. 1st Oct., 1971 a trust is brought into existence. The objects of the trust are given in cl. 3 of the Constitution. Cls. 3 and 4 which I will reproduce partly were referred to at the time of arguments. Cls. 3 and 4 read as under: 3. The objects for which the Trust is established are religious, educational and charitable, to promote and provide measures as the Trust in its discretion may think fit for the spiritual, moral, social, ethical, educational, intellectual, physical, medical, commercial, agricultural and economic welfare, interests, themes and general uplift of the people is the parish of Zankhavav. 4. For the purpose of carrying out and effecting all or any of the objects aforesaid, the Trust is empowered for the be....

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.... next held that the genuine character of the trust was religious and that too for Catholic Christians only and hence it came within the mischief of s. 13(1)(b) of the IT Act and as such the income applied on its objects was not entitled for exemption u/s. 11(1)(a) of the IT Act. The assessee went in appeal to the AAC who accepted the appeals of the assessee by holding that the ITO having come to the conclusion that the assessee was a religious trust, he was not justified in denying exemption u/s. 11 to the assessee on the ground that the objects came within the prohibition contained in s. 13(1)(b) of the IT Act. The revenue has filed these appeals against the orders of the AAC. 4. I have heard the rival submissions at length and am of th....

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.... race or religion. This being so, it cannot be said that the trust was for the benefit of any particular religious community or caste and this too excludes the operation of s. 13(1)(b). 7. I may also incidentally mention that the trust is established for religious, educational and charitable objects and thus truly speaking it is a trust having objects both of religious and charitable nature. As long as it exists for the benefit of all persons irrespective of caste, race or religious, its income will be entitled to exemption u/s. 11. Shri Thakore, the ld. counsel of the assessee even gave a further reason for non-applicability of s. 13(1)(b) of the IT Act, namely, in the case of a trust having both religious and charitable objects, the af....