1992 (12) TMI 13

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..... mmissioner that the assessee is a public charitable and religious trust and its income is entitled to exemption under section 11 of the Incometax Act, 1961?" The brief facts of the case are that the assessee has claimed expenses for repairs and maintenance of temple and dharamshala besides expenses over charity. The Income-tax Officer came to the conclusion that this is a case of a private trust and as per clause 3 of the trust deed, no deduction in respect of the repair charges shall be permissible. Against the assessment orders, appeals were preferred to the Appellate Assistant Commissioner of Income-tax, A-Range, Jaipur, wherein it was submitted that the income earned from the property held under trust is wholly for charitable and re .....

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..... Tribunal where it was contended that the son of the author of the trust has stated on October 9, 1967, that the trust is a private trust. The Tribunal came to the conclusion that the trust was created in 1928 and the copy of the original trust deed was also submitted and if the son of the author of the trust wrongly mentioned somewhere that it was a private trust, the said statement is not legally correct. The Tribunal came to the conclusion that the finding given by the Appellate Assistant Commissioner is supported by material on record and that no positive material was brought on record to show that the assessee is not a religious and charitable trust. The appeal was dismissed. In order to appreciate the arguments of learned counsel for .....

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..... at the sole purpose of the trust was to run a dharamshala which is an object of general public utility and so when this was the sole object, the income derived therefrom in the shape of the rent from the dharamshala is exempt under section 11 read with section 2(15) of the Act. Similarly, the other objects of help of Agarwals, widows and children, feeding of mendicants and help of destitutes are of general public utility and the Tribunal has rightly come to the conclusion that the assessee is a public charitable and religious trust and its income is entitled to exemption under section 11 of the Income-tax Act, 1961. Accordingly, the question is answered in favour of the assessee and against the Revenue. No order as to costs. - - TaxTMI .....

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