9911796707
TMI Blog1998 (10) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 12A of the Income-tax Act by the Commissioner of Income-tax as per order dated October 28, 1976. It claimed exemption under section 11 of the Act as a charitable institution. The assessment years involved are 1976-77, 1977-78, 1978-79, 1979-80, 1980-81, 1983-84, 1984-85 and 1985-86. For the assessment year 1976-77, the Tribunal held that the assessee is a charitable trust and that the benefit of the trust enures to the public at large and not to any particular religious community and that there is no infirmity in the objects of the trust and, therefore, held that the trust was a charitable trust entitled to exemption under section 11 of the Income-tax Act. In the trust deed, the object of the trust is stated as follows : "Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Tribunal held as follows : "In other words, even if the trust deed along with the preamble, the clarificatory resolution and the other enacting clauses found in the trust deed are read together, it is not possible to give effect to the clarificatory resolution." The Tribunal again held : "Even if a liberal construction is placed on the document as a whole at the most it could only be said that access to other communities and general charitable purposes as adumbrated in the clarificatory resolution dated April 20, 1975, can only take its seat in the rear, as the primary purpose of the Trust is for the betterment of the members of the Muslim community and for charitable purposes recognised under the Mohammedan law." The contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same section 13(1)(b) has no application and the assessee will be entitled to the benefit of section 11 of the Act. This view was followed with regard to other accounting years also. Even though one and the same question is to be decided in these cases regarding application of section 11 of the Act and interpretation of Explanation 2 to section 13 on the same set of facts for the same assessee, the questions are framed in different words. For the assessment years 1976-77 to 1979-80, 1983-84 and 1984-85 the question referred is : "Whether, on the facts and in the circumstances of the case, the assessee is a charitable institution whose income is exempt under section 11 of the Income-tax Act, 1961 ?" For the assessment years 1978-7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kward classes. Therefore, the entire Muslim community is declared as one of the backward classes. Considering the constitutional mandate and object of Explanation 2, we cannot accept the contention of learned standing counsel that even though Muslim is a backward class, since the benefit is intended only for one of the backward classes, that is, the religious community of Muslims, Explanation 2 is not applicable, According to us, Explanation 2 is clear and unambiguous. If the trust is intended for the benefit of Scheduled Castes, Scheduled Tribes or backward classes, Explanation 2 is applicable and the benefit of exemption under section 11 cannot be denied on the ground of section 13(1)(b) of the Act. All members of the Muslim community as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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