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Issues:
1. Disallowance of expenditure for charitable purpose. 2. Claim for exemption under section 4(b) of the Act. 3. Requirement of trust deed for claiming exemption. 4. Interpretation of the Memorandum of Association. 5. Assessment procedure for religious or charitable trusts. Analysis: The appeals were filed against the orders of the Assistant Commissioner of Agricultural Income Tax, concerning assessments made for the years 1975-76 to 1978-79. The appellant was assessed separately for lands held in different locations, which were later directed to be clubbed for revised assessment. The Agricultural Income Tax Officer disallowed expenditure claimed for charitable purposes, leading to the appeals. The appellant argued that it qualifies for exemption under section 4(b) as a charitable religious trust without the necessity of a trust deed. The State Representative contended that the appellant failed to provide evidence supporting the exemption claim. During the hearing, the appellant presented the Memorandum of Association and original assessment orders. The disallowance was based on the absence of a trust deed and lack of accounts showing charitable expenditure. The Memorandum of Association clearly outlined the society's charitable and religious objectives, indicating the properties were held for such purposes. The Tribunal held that no separate trust deed was required for claiming exemption under section 4(b), setting aside the assessments and remanding the matter for fresh disposal. The Tribunal emphasized the need for the Agricultural Income Tax Officer to follow specific principles when finalizing assessments for religious or charitable trusts. If a trust is exempt under the Central Act, no assessment is possible under the State Act for the agricultural income. If non-agricultural income is partially exempt under the Central Act, agricultural income will also be exempt to the same extent. The absence of rules or procedures under the Tamilnadu Agricultural Income Tax Act regarding applications for accumulations does not warrant denial of exemption. The Tribunal directed the Agricultural Income Tax Officer to proceed with assessments in accordance with the outlined principles and interpretations, ordering full refund of institution fees.
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