9911796707
TMI Blog2001 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of the Income-tax Act, 1961?" The assessee-trust is a public charitable trust. It was constituted under a trust deed dated April 14, 1975. The settlors of the trust were certain Muslim residents of Kerala. They constituted the trust 'for the purpose of constructing and establishing at Palghat a Shadi Mahal and other institutions for the educational, social and economic advancement of the Muslims and for religious and charitable objects recognised by Muslim law..." Within a few days of the creation of the trust, i.e., on April 20, 1975, a special general body meeting of the trust was held and it was resolved thus: "It was decided to further clarify the clause in the trust deed regarding the purpose of the trust as mentioned in page 5 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tution created or established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or women and children shall not be deemed to be a trust or institution created or established for the benefit of a religious community or caste within the meaning of clause (b) of sub-section (1)." It is an admitted position that in the State of Kerala the Muslims are notified to be a backward community and it is on that basis that the Tribunal and the High Court held that the trust was entitled to the benefit of the second Explanation to section 13 and, therefore, the benefit of section 11. It was contended before us on behalf of the Revenue that the Tribunal and the High Court failed to take into account the fact that the trust provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aved by the second Explanation to section 13. This contention also ignores the object of the trust which we have set out above. There is no limitation in the trust deed in regard to which Muslims can avail of the benefit of the trust. The benefit is available to Muslims from all over the world, none of whom, except in Kerala, are of backward classes. It is, there fore, not possible to accept the view taken by the High Court and the Tribunal that the trust is covered by the second Explanation to section 13. The trust attracts the provisions of section 13(1)(b) and is not entitled to exemption under section 11. The question, therefore, is answered in the negative and in favour of the Revenue. The appeals are allowed and the judgment and or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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