Law:

Section:

Section 2(15), read with section 11, of the Income-tax Act, 1961 [corresponding to section 4(3)(i) of the indian Income-tax Act, 1922]-charitable purpose-Assessee-trust had a number of objects, independent of each other, including one to open, found or establish commercial concerns and start business undertakings-Whether assessee-trust was established for charitable purpose and entitled to exemption from tax-Held, on facts, no Facts The assessee claimed exemption from income-tax for the assessment years 1961-62, 1962-63 and 1963-64 under section 4(3)(i) of the Income-tax Act. 1922/section 11 of the Income-tax Act, 1961. Earlier, the assessee's claim for similar exemption for the assessment years 1954-55 to 1960-61 had been negatived by the Rajasthan High Court by its in CIT v. Jaipur Charitable Trust [1971] 81 ITR 1 which was confirmed by the Supreme Court in Yogiraj Charity Trust v. C/r[1976] 103 ITR 777. The assessee's present claim for the assessment year 1961-62 was based on a trust deed dated 18-4-1948. There were a number of objects, a good many of which were of religious and charitable nature. Clause 5( a)(v) specified the object as: "To open, found, establish, equip, finance, assist, maintain or contribute to religious, commercial, technical, industrial or commercial concerns, institutions, associations or bodies imparting any type of training or providing employment to persons." Under clause 5(b) the trustees had power to acquire, hold, carry on and manage any trade or Business or any share thereof. The trustees also had full discretion in employing the whole or any portion of the trust property or fund in such trade or business or running business concerns or managing agencies or other investments, etc. It was also provided in clause 30 that if any object of the trust was found to be invalid or contrary to law, it would not affect the other objects of the trust. The lower authorities rejected the assessee's claim for exemption for the aforesaid assessment years. On reference, the assessee contended, inter alia, (i) that the decision of the Supreme Court in the assessee's case for earlier years should be taken as modified by the latest Supreme Court…

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