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Sanjeevamma Hanumanthe Gowda ... vs Director Of Income Tax (Exemption) on 13 March, 2006

the original deed dated 17.05.2004 would not be utilised by the trust for the purpose of achieving objectives of the trust. There is a concurrent finding of fact by two authorities, to the effect that the trust is engaged in various charitable activities in terms of the objectives of the trust. It is clear from the material on record that in terms of Clause 10 of the trust deed, when particulars were sought for, the assessee has specifically stated that they would take up Group Housing Scheme to earn profits which would be the source of income for carrying on the charitable activities. In the absence of any material on record, the finding recorded by the Commissioner, that because of such activities, the trust is not genuine and it is a camouflage to suppress its business activities and the said business is not incidental to any of its objectives is contrary to the material on record and cannot be accepted. As held by this Court in Sanjeevamma Hanumanthe Gowda Charitable Trust's Case, what the Commissioner has to look into is not the source of income of the Trust but whether such income is applied for charitable or religious purpose. The satisfaction of the Commissioner should be regarding the application of the income of the trust for the aforesaid purposes which only entitles the assessee to claim exemption. For arriving at such
Karnataka High Court Cites 5 - Cited by 5 - N Kumar - Full Document
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