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(iii) The remaining half of the net income of the trust property shall be accumulated by the trustees for such period as they might think fit and after sufficient accumulation, the same should be invested in making additions, alterations, improvements and acquisitions and the whole of the net income should be applied by the trustees for the purpose mentioned in paragraph 3(ii) thereof. "

2. The assessee was assessed to income-tax for the assessment years 1967-68 to 1971-72 and also 1973-74. It was contended before the Income-tax Officer on behalf of the assessee that 50% of the net income of the trust was exempt from income-tax under Section 11 of the Income-tax Act, 1961, as the assessee was a public charitable trust and its objects were charitable. The Income-tax Officer did not accept the contention of the assessee and following the decision of the Appellate Assistant Commissioner in the case of the assessee for the assessment year 1972-73 and also the order of the Commissioner of Income-tax passed in the said assessment year 1972-73, under Section 264, held that the assesses was not entitled to claim exemption under Section 11 of the Income-tax Act.

4. The assessee went up on further appeal before the Income-tax Appellate Tribunal. It was contended before the Tribunal on behalf of the assessee that the impugned object, i.e., maintenance of the poor and indigent relations of the settlor was merely ancillary to the main object, viz., the relief of the poor, and, as such, the predominant object was public charity. In support of this contention, the decision of the Supreme Court in the case of Trustees of the Charity Fund v. CIT was cited.

5. The Tribunal noted that in the trust deed no specific amount was set apart for public charity as distinguished from the private charitable object of the maintenance of poor and indigent relations of the settlor and it was open to the trustees to spend the entire income of the trust on the said private charitable object. The Tribunal distinguished the facts and the provisions of the trust deed in the case before the Supreme Court from the facts and the provisions of the deed in the instant case and rejected the contention of assessee. The orders of the Income-tax Officer and the Appellate Assistant Commissioner were upheld by the Tribunal and the appeals were dismissed.

(b) Yogiraj Charity Trust v. CIT . This decision was cited for the following observations of the Supreme Court (at pp. 781 and 782) :
"The question is whether exemption can be granted where some objects are charitable and some non-charitable. Where there are "several objects of a trust, some of which are charitable and some non-charitable, and the trustees in their discretion are to apply the income to any of the objects, the whole trust fails and no part of the income is exempt from tax. Where the objects are distributive, each and every one of the objects must be charitable in order that the trust might be upheld as a valid charity. If no definite part of the property or its income is allocated to charitable purposes and it would be open to the trustees to apply the whole income to any of the non-charitable objects, no exemption can be claimed....If the primary or dominant purpose of a trust is charitable, another object which by itself may not be charitable but which is merely ancillary or incidental to the primary or dominant purpose would not prevent the trust from being a valid charity. A clear distinction must be drawn between the object of a trust and the powers conferred upon the trustees as incidental to the carrying out of the object. "

19. Learned advocate for the Revenue also cited East India Industries (Madras) Pvt. Ltd. v. CIT , Shervani Charitable Trust v. CIT [1968] 69 ITR 750 (All), CIT v. Jaipur Charitable Trust [1971] 81 ITR 1 (Delhi) and Lakshmi Narain Lath Trust v. CIT . The decisions do not lay down any further or new principle and need not be considered in detail.

20. From the decisions cited, it appears that the law is settled that if the object of the trust is to help only the relations of the settlor, poor or not, the same will not be a public charitable object though the relations may be poor and indigent. Law is also settled that if a trust has more than one object and one of the objects is non-charitable, then, if the hands of the trustees have been left unfettered in the distribution of the income of the trust between charitable and non-charitable objects, the trust concerned would not be entitled to exemption from income-tax.