9911796707
TMI Blog2000 (4) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... n [1988] 171 ITR 323), pertaining to the assessment years 1974-75 and 1975-76. Following the said order, the High Court disposed of R. C. No. 292 of 1982 for the assessment years 1976-77 and 1977-78 which gave rise to Civil Appeals Nos. 9269-9270 of 1995. H. E. H. the Nizam of Hyderabad created a trust with a corpus fund of Rs. 22,20,000 named "H. E. H. the Nizam's Pilgrimage Money Trust" oil November 2, 1950. The objects of the trust, inter alia, are that during the lifetime of H. E. H. the Nizam to meet expenses of Haj pilgrimage of himself and the members of his family accompanying him on such pilgrimage and expenses on visits to holy places of Hedjaz and Iraq and also for making religious offerings at such places as the settlor in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the settlor's lifetime and the investments thereof for all or any one or more of the following religious or charitable objects and purposes at Hedjaz and/or Iraq in such manner as the trustees may in their absolute discretion, think proper :---... (v) for constructing, establishing and maintaining dispensaries or hospitals or wards in hospitals and otherwise for medical aid and relief ; (vi) for constructing, establishing, maintaining and running schools, madrasahs and other educational institutions and otherwise for advancement of education ;... (vii) for such other religious or charitable purposes as the trustees may, in their absolute discretion, think fit in such manner and to such extent as they may think fit," Thereafter, they fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following question of law to the High Court for its opinion (at page 325 of 171 ITR) : "Whether, on the facts and in the circumstances of the case and on a proper construction of the scope and effect of the judgment of the Chief Judge of the City Civil Court, Hyderabad, in the proceedings under section 34 of the Indian Trusts Act, the Tribunal is correct in holding that as on the relevant valuation dates corresponding to the assessment years 1974-75 and 1975-76 the corpus of the trust fund cannot be said to have been held in trust for charitable or religious purposes in India and the assessee-trust is, therefore, not entitled to exemption under section 5(1)(i) of the Wealth-tax Act. 1957, in respect of the corpus of the trust fund?" The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal obligation for any public purpose of a charitable or religious nature in India : Provided that nothing contained in this clause shall apply to any property forming part of any business, not being a business referred to ill clause (a) or clause (b) of sub-section (4A) of section 11 of the Income-tax Act in respect of which separate books of account are maintained or a business carried on by an institution, fund or trust referred to in clause (22) or clause (22A) or clause (23B) or clause (23C) of section 10 of that Act." A perusal of the provision shows that wealth-tax is not payable in respect of any property held by the assessee under the trust or other legal obligation for any public purpose of a charitable or religious nature in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Trusts Act, applies only to private trusts and admittedly after the death of the settlor, on February 24, 1967, the trust became a public charitable and religious trust. However, learned counsel submitted that section 34 of the Trusts Act might be taken as wrongly mentioned and the order passed by the court be treated as on a suit/petition for, change of the objects of the trust by applying the doctrine of cy pres to save the trust from falling. He relied on the decisions of this court in Sheikh Abdul Kayum v. Mulla Alibhai, AIR 1963 SC 309 ; [1963] 3 SCR 623, and State of Uttar Pradesh v Bansi Dhar, AIR 1974 SC 1084 ; [1974] 1 SCC 446. The principle laid down in those cases is that the general principles of trust adumbrated in the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l save the trust from falling by invoking the cy pres doctrine and utilise the trust property for some other charitable and religious purpose as near as possible to the object of the trust mentioned by the settlor. But having regard to the nature of the present proceedings the question of invoking doctrine of cy pres does not arise, therefore, we do not propose to deal with that aspect. From the above discussion, it follows that the judgment of the Chief Judge, City Civil Court, Hyderabad, does not have the effect of altering the object of the trust. Therefore, the second contention of learned counsel for the appellant also fails. For the foregoing reasons, we hold that the High Court has rightly answered the question in favour of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
