Law:

Section:

Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under - Assessment years 1964-65 to 1969-70 - Objects of assessee-trust included to finance projects and activities organized by Bharat Krishak Samaj and to undertake and support campaigns for working towards freedom from hunger initiated by Bharat Krishak Samaj or by Food and Agriculture Organisation of United Nations or otherwise - Generally, all objects of trust were with a view to improve lot of farmers - Whether objects of trust were objects of public utility and, therefore, trust was entitled to exemption under section 11 - Held, yes FACTS The assessee was an association of persons constituted by a registered deed under the Societies Registration Act, 1960. The corpus of the assessee-trust came from the World Agriculture Fair organised by Bharat Krishak Samaj. The only source of income of the trust was from a building. The principal objects of the assessee trust were many and generally, all those objects were with a view to improve the lot of farmers. However, the ITO found two of the objects viz. to finance projects and activities organized by the Bharat Krishak Samaj and to under take and support campaigns for working towards freedom from hunger initiated by the Bharat Krishak Samaj or by the Food and Agriculture Organisation of the United Nations or otherwise, to be non charitable. The AAC and the Tribunal, however, allowed the assessee's claim for exemption. On reference: HELD So far as the first object was concerned, in the case of Bharat Krishak Samaj, it had been independently held that it was a charitable organisation. It was held that an organisation which had for its object the protection, promotion and advancement of agricultural producers in India was an object of general public utility as to improve the lot of the farming community is as much a matter of public utility as to improve the lot of Art Silk Industry. One must, therefore, assume that the first of those objects was a charitable object. As far as the second object was concerned, it appeared that to undertake and support campaigns for working towards freedom from hunger…

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