9911796707
TMI Blog1983 (3) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... not satisfy the test of public benefit required for treating as a charitable trust. The ITO referred to the objects of the assessee trust and held that the objects of the trust were charitable only regarding some and in the dominant objects of the society, public welfare was lacking. The ITO accordingly held that the assessee was not entitled to the exemption u/s 11 and 12 and assessed its total income at Rs. 5,65,400 taking into account also its agricultural income for rate purposes. For the asst. yr. 1978-79 the ITO made similar assessment on total income of Rs. 6,44,715. 2. On the assessee s appeal the Commissioner (A) referred to the provisions of the assessee's Memorandum of Association and the assessee s arguments viz., that the soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enance of educational institutional, boarding houses, libraries, museums, professors and of any other measures incidental to the prosecution of studies and complete formation of the above said members. (c) And generally, for any other educational, religious and charitable purpose or purposes as in the opinion of the governing body may be conductive to the maintenance and advancement of the intellectual, spiritual and material interests of Madurai Province of the Society of Jesus. The members of the Jesuit Society are only a cross section of the public belonging to catholic faith. As stated earlier, any catholic having faith in the objects of the society could become a member of the society. The institution was founded in 1930 by a few J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (A) also held regarding the asst. yr. 1976-77 that the reopening of the assessee is illegal. 3. We have heard the parties and are unable to find any merit in the revenue s appeal. The department s submission before us is that the primary object of the assessee-society is only for the benefit of the members of the Jesuit Society, which is not benefit to a cross section of the public and that the educational institutions referred to in the Commissioner(A) s order are independent units having no control by the assessee. The assessee was registered under the Societies Registration Act, 1860, on 24th October, 1930 and is governed by the Memorandum of Association, the three objects of the society being as extracted above in the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a trust is charitable, any other object which by itself may not be charitable but was merely ancillary or incidental to the primary purpose, would not prevent the members of the institutions from being a valid charity (1965) 55 ITR 722 (SC). Regarding the identity of the members who are the beneficiaries of trust, the Supreme Court decision in (1971) 82 ITR 704 (SC) (Ahmedabad Rana Caste Association vs. CIT is apposite, viz., that an object beneficial to a section of the public is an object of general public utility and it is sufficient if the intention to benefit section of the public as distinguished from a specified individual is present the section of the community sought to be benefitted must be sufficiently definite and identifiab ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
