Law:

Section:

Section 11 of the Income-tax Act, 1961 [Corresponding to section 4(3)(i) of the Indian Income-tax Act, 1922] - Charitable or religious trust - Exemption of income from property held under - Assessee, an association of persons, held diverse properties under legal obligation for purposes set out in its Constitution - Beneficiaries of those purposes were members of community as defined in constitution - Whether object of assessee to do acts beneficial to community was object of general public utility and, therefore, charitable - Held, yes - Whether purpose calculated to promote unity and brotherhood amongst members of community was purpose beneficial to community and therefore, charitable - Held, yes - Whether purpose of bringing about complete development of all aspects of life would comprise economic, physical, intellectual as well as spiritual well-being and would normally be purpose beneficial to public and, therefore, object of assessee to do all acts which brought about complete development of all aspects of life of male and female members of community, was charitable - Held, yes - Whether arranging Bhandara i.e. dinner of Brahmins was religions purpose - Held, yes - Whether, therefore, property held by assessee under legal obligation was wholly for religious or charitable proposes and, therefore, income derived from those properties was exempt under section 4(3)(i) of 1922 Act and section 11 of 1961 Act - Held, yes Words and Phrases : Expressions 'General', 'Public' 'Utility' as occurring in section 2(15) of the Income-tax Act, 1961. FACTS The assessee an association of persons, held diverse properties under legal obligation for the purposes set out in its Constitution. The relevant clauses of the Constitution were as follows : "3. The objects and functions of this institution shall be as under: (1)to manage the immovable and movable properties of the Rana community; (2)to do such acts as would spread education in the community and to render all possible help in that connection; (3)to render medical assistance to the community; (4)to do acts which would be useful to the community; (5)to do all acts according to capacity which promote unity and brotherhood…

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