Law: Income Tax Act, 1922

Section:

[Kerala Agricuiture Income Tax Act 1950].....Section 4 Exemption Charitable trust Object of trust to propagate Jain religion and to render services to followers of that religion with particular reference to families who created trust Whether Tribunal rightly held mat the trust was not entitled to claim exemption Held yes Amount spent outside the state - Whether allowable expense Held no:- The authorities under the Act including the Appellate Tribunal minutely examined various terms of the trust deed and found that for all intents and purposes the object of the trust was to propagate a particular religion and to render service to the followers of that religion, particularly, with reference to the families who created the trust. The assessee, therefore, could not be considered for exemption, being a private trust, set up to promtoe a particular religion whose Agricuiture income does not ensure for the benefit of general public. We have also examined the trust deed which was produced at the time of arguments. The deed of trust and the rules run into more than thirty pages out of, which six pages of the trust deed narrate the philosophy of the Jain dharma. The objects of the trust clearly show that the trust is meant for propagation of the Jain religion and rendering help to the followers of the Jain religion. Even the medical aid and similar facilities are to be rendered to persons devtoed to the Jain religion and to non Jains if suffering from ailments but the medical aid could be given to them only if any member of the families managing the trust, shows sympathy and is interested in their treatment. The Tribunal, in our opinion, was right in its conclusion that the dominant purpose of the trust in the present case was propagation of the Jain religion and to serve its followers and any part of Agricuiture income of the trust spent in the State of Kerala also could not be treated as an allowable item of expense. ORDER [The Judgment of the Court was delivered by D. P. Wadhwa, J. ] - The State of Kerala in this appeal is challenging the judgment dated February 6, 1986 (see [1987] 164 ITR 766], of the Division Bench of the Kerala High Court holding that M. S. P.…

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