SAMARITAN SOCIETY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an appeal against the decision of the Kerala High Court. The following two questions were referred to it under section 256 of the Income-tax Act, 1961

(2.) THE Tribunal has found as a fact that the real objects of the trust are charitable and that items 6 and 7 which enable the trust to carry on business, are meant merely to enable the trust to carry on its charitable objects in a more effective manner. It is also stated that items 6 and 7 are not really objects but more in the nature of powers for better carrying out of the objects. In view of this finding and also in view of the decision of this court in Dharmadeepti v. CIT we are of the opinion that these appeals are entitled to succeed. We may also mention that the objects concerned in Dharmadeepti's case (SC) and the objects concerned herein are in pari materia. Be that as it may, in view of the aforesaid finding of the Tribunal it is not possible to hold that the main object of the trust is to carry on the business