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TMI Blog2003 (12) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... e trust would not disqualify the trust from being regarded as a charitable trust - The view taken by the Tribunal that the properties held by this trust are not held for charitable purpose is erroneous. The appeal is allowed. The question set out earlier is answered in favour of the assessee and against the Revenue. - - - - - Dated:- 1-12-2003 - Judge(s) : R. JAYASIMHA BABU., S. R. SINGHARAVELU. JUDGMENT The judgment of the court was delivered by R. Jayasimha Babu J. - The question raised in these appeals by the assessee is as to whether the Tribunal is right in holding that the assessee is not entitled to exemption under section 5(1)(i) of the Wealth-tax Act, 1957. The assessee is a trust whose objects are set out in clause 4A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and departments on the lines envisaged by Sri Aurobindo and the Mother; (v) To promote, carry on, aid or assist various works and efforts in connection with labour welfare or for the benefit of labour and/or for finding work for the unemployed; (vi) To establish and organise, maintain, grant and assist without distinction of religion or community, schools, dispensaries, recreation centres, libraries, technical and experts aid and advice bureau, parks, children's centres, physical culture centres, etc.;" Clause 4B of the trust deed obligates the trustees to utilise the entire income and corpus of the trust only for contributing to Sri Aurobindo International Centre of Education and/or to Sri Aurobindo Ashram and/or for the carrying out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utility." The words "not involving the carrying on of any activity for profit" which had followed "the object of general public utility" were omitted from the definition by the Finance Act, 1983, with effect from April 1, 1984. This court in the case of CWT v. Gangabai Charities [1999] 236 ITR 735 has held that the interpretation of a trust deed for considering the liability of the trust for being regarded as a charitable trust under the Income-tax Act is relevant for the purpose of considering the claim of such a trust for exempting its properties from wealth-tax under the Wealth-tax Act. The Supreme Court in the case of CIT v. Andhra Chamber of Commerce [1965] 55 ITR 722 has held that the incidental benefit received by a member of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This trust, as noticed earlier, has been treated as a charitable trust under the Income-tax Act. We see no good ground to treat the trust differently for the purpose of the Wealth-tax Act as the properties held by the trust are burdened with the obligation of being used or applied only for the objects of the trust which are charitable in nature. Learned counsel for the Revenue sought to contend that this court has already rejected a similar claim by a trust similar to the one now before us in the case of CIT v. Workshop Trust [1983] 142 ITR 26 (Mad). In that case, the court considered a trust deed which was executed by a disciple of Shri Aurobindo, who after having started a carpentary workshop, created a trust called a workshop trust. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and other institutions which are charitable institutions. As held by the Supreme Court in the case of Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1, the carrying on of an activity for profit in the course of actually carrying out the primary purpose of the trust would not disqualify the trust from being regarded as a charitable trust. The fact that the trust here carries on a business and derives an income therefrom and holds properties for the purpose of running the business does not disable it from being regarded as a charitable trust and the properties held by it as being held for a charitable purpose. It is not the case of either the Revenue or the assessee that the properties held are for religious purposes. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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