Law:

Section:

Section 11, read with section 2(15), of the income-tax act, 1961-Charitable or religious trust-Exemption of income from property held under-Assessee trust's objects included promotion of education and educational institutions and help to sick and handicapped-However one object provided for help to any person who wishes personal needs but no expenditure was actually made on this object-All objects were subject to the condition that in the event of any object being found non-charitable it was not to be carried out by the trustees-Whether the trust was entitled to exemption notwithstanding the object providing for help to any person for his personal needs-Held, on facts, yes Facts The objects of the assessee-trust were, inter alia, promotion and establishment of schools and colleges ; to give scholarships, etc., to poor and deserving students ; pend on public charitable objects, viz., grant of aid to sick and handicapped people and to donates for charitable purposes. However, one object of the trust provided for monetary help to any person for his personal needs and the needs of the members of his family. The ITO, holding this object to be non-charitable, refused exemption under section 11, even though it was specifically provided in the trust deed that in the event of any one or more objects being held to be non-charitable, the trustees shall not carry out such object and the validity of the trust shall not be affected in any manner. It was also on record that no expenditure had been made on this particular object. The trust's appeal against refusal of exemption was accepted by the AAC and the Tribunal confirmed the AAC's order. On reference : Held It is well settled that in order to determine the true import of a document, its various clauses have to be read as a whole. In the instant case, the proviso added to the objects of the trust clearly indicated that in case either of the objects of the trust was held not to be an object of public or charitable nature, the trustees shall not carry out such object and in that contingency the validity of the trust treated as a trust for public or charitable purposes shall not be affected in any manner. There was not only a…

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