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Showing contexts for: charitable trust objects in Acit(Exemption), Jaipur vs Mahima Shiksha Samiti, Jaipur on 3 March, 2017Matching Fragments
36. It was further submitted that it is an established legal position that granting of loan or financial assistance by a charitable trust/institution for advancement of its own objectives is application of income under section 11(1)(a) of the Act. It has also been clarified in the CBDT Circular No. 100 ITA No. 105,106,30& 31/JP/16 Mahima Shiksha Samiti, Jaipur vs. ACIT,(Exemption), Jaipur dated 24th January, 1973 that if the object of the trust is advancement of education and granting of scholarship loans as only one of the activities carried on for the fulfillment of the objectives of the trust, granting of loans even interest bearing will amount to the application of income for charitable purposes.
37. Reliance is further placed on the following judicial pronouncements:-
• Indian National Theatre Trust v. ITO (1985) 13 ITD 588 (Delhi - Trib.) The assessee trust, constituted with an object to promote cultural activities, had lent certain amount to another charitable trust whose object was not only to promote cultural activities but also to maintain library room and reading room. The said loan was held amounting to application of income and lower authorities were held not justified in rejecting the assessee's claim on the ground that the objects of the done trust were not similar.
• CIT vs. JK Charitable Trust (1992) ITR 31, 42 (All) A charitable purpose may be served in more than one way. One is to directly contribute for the promotion of that cause; the other is to contribute money to another charitable organization, which advances that cause. The amount contributed to other charitable institutions amounts to application of the income for charitable or religious purposes.
• Commissioner of Income Tax and Anr. Vs. Shamnur Savithramma Kallappa Public Trust (2011) 53 DTR (Kar) 117 ITA No. 105,106,30& 31/JP/16 Mahima Shiksha Samiti, Jaipur vs. ACIT,(Exemption), Jaipur Clause 4(a) makes it clear as to what are the purposes for which the trust is constituted. If authorizes the trust to extend financial or other assistance to such institutions. Therefore, the clause in the trust deed is unambiguous. There is no scope for any confusion. Not only the trust carries on charitable purpose, but it also extends assistance to such institutions carrying on these charitable purposes. assessee charitable trust formed with the object of imparting general, professional and technical knowledge and authorized to extend assistance to other institutions carrying on similar charitable activities, having made donations to other charitable trusts which are approved under s. 80G, exemption under s. 11 could not be denied to the assessee trust on the ground that the donations given by it were not utilized for the objects enumerated in the trust deed.