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TMI Blog2011 (8) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... for exemption u/s 10(22) - Deed did not transfer the ownership of the hotel property to the appellant. It only gives a very limited interest in the hotel properly - Decided that exemption granted under Section 10(22) of the Income Tax Act continues to apply to the assessee even to this day - Section 5(1)(i) of the Wealth Tax Act provides wealth tax shall not be payable by an assessee in respect of the assets mentioned therein which included property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India - Hence held that wealth tax is not payable by the assessee - Appeal of revenue dismissed. - W.T. NOS. 1 TO 7 OF 2005 - - - Dated:- 1-8-2011 - N. KUMAR AND RAVI MALIMATH, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter is pending. 3. One Dr. TMA Pai Foundation which is owning and running many educational institutions has also been running a catering college called "Welcome Group Graduate School of Hotel Administration". Under an agreement dated 4.8.1987 Dr. TMA Pai Foundation entered into an arrangement with Welcome Group ITC Limited for purpose of administration, operating of the catering college and Hotel called "Valley View International Health Resort". The assessee claims that it was providing training facilities to the students from the said institutions. 4. The assessing officer recorded a categorical finding that the assessee-Trust was created on 29.3.1985 and it has not filed any application before the Mangalore University for affilia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is entitled to the benefit of exemption from payment of wealth tax under Section 5(1)(i) of the Wealth Tax Act. 8. We have heard the learned counsel appearing for the parties. 9. The facts are not in dispute. The assessee-Trust was formed by a deed of Trust dated 29.3.1985 and the object of the Trust include the following: - (a) To sponsor catering courses and activities and for that purpose to take over or start, run and support, training colleges or other institutions and to do all other things which are ancillary and necessary for providing catering education to the public. (b) To provide educational facilities in catering to the public including the starting, running or supporting of schools, colleges, training centres and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Declaration. The Deed of Declaration dated 6-8-1985 did not transfer the ownership of the hotel property to the appellant. It only gives a very limited interest in the hotel properly as it existed at the relevant time and subject to the condition that a Catering College will be either started or will be supported, by the appellant. In the meantime, Dr. TMA Pai Foundation, an educational trust, whose income has been held to be exempt u/s 10(22) of the Income-Tax Act (for short Act), obtained affiliation from the Mangalore University for Bachelor of Hotel Management Course. Accordingly, a tripartite agreement was entered, into amongst Kasturba Medical College Trust, the appellant Trust and Dr. T.M.A. Pai Foundation. In conformity with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty in dispute do not constitute a charitable or religions purpose is difficult to accept. In fact Section 5(1)(i) of the Wealth Tax Act provides wealth tax shall not be payable by an assessee in respect of the assets mentioned therein and such assets shall not be included in the net wealth of the assessee. One such asset is, any property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India. Under the provisions of the Income Tax Act, the income derived from such property is exempt from income tax on the ground that the said income is utilised for a public purpose or charitable or religious nature. If the said property is held to be a charitable property, it cannot be said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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