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Commissioner of Income-tax Vs. Urmilla Bansi Dhar Foundation Trust - Court Judgment

LegalCrystal Citation
Subject Direct Taxation
CourtDelhi High Court
Decided On
Case NumberIncome-tax Case No. 97 of 1982
Judge
Reported in[1986]159ITR100(Delhi)
Acts Income Tax Act, 1961 - Sections 11
AppellantCommissioner of Income-tax
RespondentUrmilla Bansi Dhar Foundation Trust
Excerpt:
- .....with the direction that the income should be used for charitable purposes. from this, it is clear that a business asset was entrusted to trustees for utilisation of the income for charitable purpose. the trust deed relating to the assessed foundation specifically provided that the income should be used for charitable purposes but not for running a business for profit. this meant that the income could not be used for running a business for profit. this type of a case is covered by the judgment of the supreme court in addl. cit v. surat art silk cloth manufacturers association : [1980]121itr1(sc) . this judgment was followed by the tribunal. we would, accordingly, decline to call for a reference and dismiss the petition.
Judgment:

D.K. Kapur J.

1. The reference petition before us under section 256(2) of the Income-tax Act claims that a question of law arises regarding the assessed not being a charitable institution because it runs an activity for profit. The facts of the case are that Shri Ram Education Foundation had settled a business on trust with the Urmilla Bansi Dhar Foundation with the direction that the income should be used for charitable purposes. From this, it is clear that a business asset was entrusted to trustees for utilisation of the income for charitable purpose. The trust deed relating to the assessed foundation specifically provided that the income should be used for charitable purposes but not for running a business for profit. This meant that the income could not be used for running a business for profit. This type of a case is covered by the judgment of the Supreme Court in Addl. CIT v. Surat Art Silk Cloth Manufacturers Association : [1980]121ITR1(SC) . This judgment was followed by the Tribunal. We would, accordingly, decline to call for a reference and dismiss the petition.


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