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Modi Charitable Fund Society vs Income-Tax Officer on 28 December, 1982 cites

Commissioner Of Income-Tax vs P. Krishna Warrier on 17 November, 1970

In view of what we have held above, the whole of its income is to be applied for the purposes at (a), (b) and (d). As such, the said business is wholly held in trust and is outside the purview of Section 13(1)(bb). This view of ours finds support from the ratio of the decision of the Supreme Court in P. Krishna Warrior's case (supra) and Dharmodayam Co.'s case (supra). In the former case the testator, who was carrying on the business of making and selling ayurvedic medicines under the name of Arya Vaidyasala, by his will, vested the business on trustees directing them to apply 60 per cent of the income thereof to charitable purposes and 40 per cent for the benefit of his family. The question was whether 60 per cent of the income which was to be applied for charitable purposes was liable to tax under proviso (b) to Section 4(3)(i) of the Indian Income-tax Act, 1922, akin to Section 13(1)(bb) of the 1961 Act, on the ground that the entire income was not applied for charitable purposes. On these facts, the Supreme Court held that the business was 'property' held in trust partly for charitable purposes within the meaning of the main part of Section 4(3)(i). Clause (b) of the proviso did not apply to a business held in trust. Therefore, 60 per cent of the income from the business was exempt from income-tax under Section 4(3)(i) of the 1922 Act.
Kerala High Court Cites 5 - Cited by 22 - Full Document

Additional Commissioner Of Income-Tax ... vs Surat Art Silk Cloth Manufacturers ... on 19 November, 1979

18. It may be added at this stage that the assessee being aggrieved against the assessment order for the accounting period relevant to the assessment year 1973-74, brought the matter by way of appeal before the A AC, who vide his order dated 29-11-1977 agreed with the assessee. The observations of the AAC in this behalf have been reproduced by the ITO at page 4 of the assessment order for the year under consideration. This order of the AAC was challenged by the department before the Tribunal in IT Appeal Nos. 4624 to 4626 (Delhi) of 1977-78, decided on 17-4-1982. Therein the Tribunal has agreed with the ITO that the assessee-society was established for 'advancement of any other object of general public utility' but at the same time agreed with the assessee's stand of 'not involving the carrying on of any activity for profit'. For so holding the Tribunal relied on the decision of the Supreme Court in Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1. This view was followed by the Tribunal in the appeals for the subsequent two years, namely, the assessment years 1975-76 and 1976-77, copies whereof are at pages 16 to 19 and 20 to 22 of the first paper book filed by the assessee.
Supreme Court of India Cites 45 - Cited by 2322 - P N Bhagwati - Full Document
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