1998 (11) TMI 50

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..... Appellate Tribunal is right in holding that the trust is a valid charitable trust and in directing the Wealth-tax Officer to redo the assessments in the light of the provisions of section 21(1) read with section 21A of the Wealth tax Act, 1957 ?" The trust referred to is one which was created under the deed dated October 10, 1986. The trust deed has not been produced before us. It is agreed by .....

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..... ome of the trust has been applied for any purpose which cannot be regarded as charitable purpose. The Supreme Court in the case of Gangabai Charities v. CIT(1992) 197 ITR 416 held that the crux of the statutory exemptions under section 11(i)(a) of the Act is not the income earned from the property held under the trust but the application of the said income for religious and charitable purposes and .....

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..... all that belonged to the trust is utilised for the purpose of charity. The mandate is therefore clear that the properties of the trust which having regard to the context, should include the income from the properties, should be applied solely for charitable purposes. We, therefore, answer the question referred to us in favour of the assessee and against the revenue. - - TaxTMI - TMITax - I .....

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