TaxTMI 
TaxTMI 
1980 (10) TMI 92
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....rust. In his view, sub-cl. (vii) of the cl. 4 of the deed of trust offended the concept of a public charitable trust. In his view the provision for rendering monetary help to any person for his personal needs of the members of his family as may be decided by the Trustees was repugnant to his claim for exemption of income pertaining to a public charitable trust. Against this order the assessee went in appeal before the AAC who disagreed with the finding of the ITO. In his view, the Trust was fully qualified as a public charitable trust to claim exemption of its income. The Revenue impugned the finding of the AAC by filing an appeal before the Tribunal. A point was canvassed on behalf of the Revenue before the Tribunal that the assessee carri....
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....s 1975 CTR (Kar) 114 : (1976) 102 ITR 474 (Kar.). Since we are restoring the case back to the AAC to enable him to deal with the whole spectrum of the case when passing fresh order. We refrain from going any deeper in the case. The AAC shall pass fresh orders according to law after giving both the parties due opportunity of representation." 2. The appeal was being restored to the AAC who delved into the facts once again. According to him, trading activities of the Trust were not fatal to its claim for exemption on the ground that it was a Public Charitable Trust. According to him cl. (ix) of the Deed of Trust which permitted it to carry on business was not the primary or secondary object of the Trust but was only a means or device to ach....
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....cl. 4 which was the object clause and gave out numerous objects. We may reproduce the whole of the clause alongwith the proviso which will be the principal material on which we will reach a finding. 3. The objects of the Trust shall be— "(i) To establish and promote the establishment of and/or render aid to schools, Colleges and other educational and training institutions. (ii) To establish, support, maintain or aid technical engineering and/or commercial colleges and also schools and colleges for science, arts, etc., and for promotion of science, literature and fine arts and for the diffusion of useful knowledge and for the collection of various works of natural art and natural history or other useful subjects. (iii) To estab....
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.... the Trustees shall not carry out such object or objects as if the same are not incorporated in these presents but the validity of the Trust created by these presents as a Trust for public and charitable purposes shall not be affected in any manner." According to the counsel for the assessee there were 10 clauses giving various objects of the Trust. The objective referred to in cl. (vii) was one of them which so far has not been acted upon. therefore, it was wrong on the part of the IT authorities to think that this clause may be given precedent over other clauses and the entire income of the Trust may be spent in realizing the objective detailed in this. He further referred our attention to the aforesaid proviso which ensured that in ca....
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.... community, or religion or heed. Rendering help to any person can by no means amount to an uncharitable act. The aim of charity is not to benefit all persons of humanity. Charity to fellow beings will always have reference to individuals only. The provision does not offend the definition of charitable purpose in s. 2(15A) of the Act, which includes the relief of the poor. The omission of the term 'poor' is quite met out by providing for help to a person for his personal needs. We cannot hold that the term 'personal needs' may vary with individuals and for a wealthy man provision of whisky and objects of fast living may constitute his personal need. We would be reading in the terms personal need a meaning out of context with our society and ....