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4. The assessee preferred an appeal before the Appellate Assistant Commissioner who held that the trust was established for charitable objects and the funds had been utilised for charitable objects and the trust was exempt under Section 11 of the Act. The Appellate Assistant Commissioner also held that the funds of the trust were not diverted for any non-charitable purpose. He also held that the Income-tax Officer was not justified in treating the assessee trust as a non-charitable trust and the assessee had not forfeited the exemption to which it was entitled.

8. Mr. C. V. Rajan, learned counsel for the Revenue, on the other hand, submitted that the objects of the trust clearly show that the trust was formed on non-charitable objects and one of the objects of the trust was to carry on chit business which clearly shows that the objects of the trust involve business activity for profit. He also submitted that there was a violation of the provisions of Section 13(1)(c) of the Act. The further submission of learned counsel for the Revenue was that the provisions of Section 13(1)(bb) of the Act are attracted for the assessment year, viz., 1979-80, and since the business was not carried on in furtherance of the objects of the trust, the assessee was not entitled to exemption under Section 11 of the Act for the assessment year 1979-80.

9. We have already set out the objects of the trust. The objects of the trust, in our opinion, are charitable in nature. The objects provide for promotion of education, patriotism, establishment of educational institutions and library, to render help to poor students for the purpose of education and to render help to the poor for the relief from poverty. The objects of the trust clearly show that the trust was established for laudable charitable purposes. The objects of the trust also provide for establishment of marriage hall attached to the temple in Annoor. Learned counsel for the Revenue submitted that the marriage hall can be utilised for commercial use and, therefore, the objects of the trust cannot be regarded as charitable in nature. We are unable to agree with the contention of learned counsel for the Revenue as the object of establishment of marriage hall cannot be read in isolation, but it has to be read along with other objects of the trust. Further, the object also provides that the marriage hall should be attached to the temple which shows the intention of the founder of the trust was that the kalyana mandapam has to be used for public purpose. Further, the clause of the objects providing that the marriage hall should be attached to the temple shows that it is primarily intended for rendering certain social service to the people in that particular village so that the hall can be used for marriage purposes and it cannot be assumed that it was meant for commercial purposes. Therefore, on the facts of the case, we are satisfied that the object of establishment of a marriage hall cannot be read de hors other objects of the trust, but the objects, if read in the light of other objects, would show that that object is also charitable in nature.

18. Section 13(1)(bb) of the Act provides that in the case of a charitable trust for the relief of the poor, education or medical relief, which carries on any business, the income derived from such business is not exempt, unless the business is carried on in the course of actual carrying out of a primary purpose of the trust. A reading of the section clearly shows that the business must be carried on by the charitable trust to carry out the primary object of the trust. Section 13(1)(bb) of the Act provides that to claim exemption under Section 11 of the Act, it is not enough that the business is carried on to feed the charity or to accomplish one of the charitable objects of the trust, but the business itself must be carried on in the course of actual carrying out of the primary object of the trust. The section can be understood by an illustration of an educational institution which is established for the purpose of promoting education and during the course of its activities as an educational institution, it may carry on a business of purchasing and selling books to the students, and if any profit is realised during the course of carrying on such business, then, it can be stated that the income derived from the business is exempt under Section 11 of the Act. But, on the other hand, if a business unconnected with the objects of the trust is carried on by the trust, though the profit of the business is utilised to achieve the objects of the trust, that would not be sufficient to meet the requirement of Section 13(1)(bb) of the Act. The section clearly provides that the business must be carried on in the course of actual carrying out of the objects of the trust.