9911796707
TMI Blog1984 (9) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... -74 1974-75 were filed in time by the Revenue. 3. Assessments for asst. yrs. 1973-74 1974-75 originally made by ITO were set aside by the AAC vide order dt 16th Jan., 1975 where he observed in Para 3(iv) that ITO had not mentioned as to what were the objects of the Trust (AAC noted the assessee's contention that one of the objects was to construct Dharmshals properties). AAC observed that the facts in the assessee's case were comparable to these in Satye Vijay Patel Hindu Dharamshala Trust vs. CIT (1972) ITR 683 (Guj) where the trust was created by transferring certain immovable properties but they had to be administered as Hindu Dharamshala and part of the income utilised for construction of new Dharamshala was held to be exempt havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spent on temple. ITO accordingly assessed not surplus of income and expenditure at Rs. 52,910. 7. Similarly, in asst. yr. 1974-75, ITO assessed the income of Rs. 91,520 rejected the assessee's claim of Rs. 99,102 on construction in building account and loss of Rs. 2,233 in machinery account. 8. CIT(A) annulled both the assessments accepting the assessee's contention that the assessments had been set aside by AAC with the directions to the ITO to consider the objects of the trust but the ITO had not done so and, therefore, ITO's order was without jurisdiction as was held in Katihar Jute Mills (P) Ltd. vs. CIT (1979) 120 ITR 861 (Cal). He further observed that the assessee's case was on all fours with Satye Vijay Patel Hndu Dharmashala T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et out on rent and the rent so derived was divested primarily for running and maintaining Dharmashala and surplus was utilised for serial, educational and philanthropic purposes. It was held that the dominant object of the trust was not to earn profit but to carry out the objection of general public utility and, therefore, the trust was a charitable trust. Reliance was also placed on Ganga Prasad Verma Memorial Society (1981) 24 CTR (All) 110 : (1982) 134 ITR 421 (All) where it was held that raising of moral intellectual, economic, social and political condition of people was a charitable purpose and did not involve carrying on of activity for profit and that receiving rent from building and interest on fixed deposit did not amount to carry ..... X X X X Extracts X X X X X X X X Extracts X X X X
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