JAIPUR CHARITABLE TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These Income Tax References raise the question of the entitlement of the Jaipur Charitable Trust to exemption from Income Tax for the assessment years 1961 -62, 1962 -63 and 1963 -64 (for which the previous years were respectively the preceding financial years). The claim in respect of the first of these years has to be considered under s. 4(3)(i) of the Indian I.T. Act, 1922, whereas the claim for the two succeeding years has to be considered under the provisions of s. 11 of the Income Tax Act, 1961.

(2.) The claim of this trust for the same exemption under the Indian I.T. Act, 1922, in relation to the assessment years 1954 -55 to 1960 -61, was considered and negatived by the judgment of this court in CIT v/s. : [1971]81ITR1(Delhi) , which was also confirmed by the Supreme Court in Yogiraj Charity Trust v/s. : [1976]103ITR777(SC) . Actually these decisions were concerned with five trust deeds executed by Seth Ramkrishna Dalmia on various dates in 1946, 1948 and 1949. These trusts were the Jaipur Charitable Trust, Yogiraj Charity Trust, Dalmia Jain (Jind State) Charity Trust, Bhriguraj Charity Trust and Dalmia Jain Charity Trust, Delhi. This explains the difference the cause title between the decision of the Delhi High Court and the case decided by the Supreme Court. Even now along with the present case of Jaipur Charitable Trust we have also heard the references of Dalmia Jain (Jind State) Charity Trust and the Dalmia Jain Charity Trust for the assessment years 1959 -60 to 1966 -67 and 1965 -66 to 1966 -67. These trusts appear to have been subsequently renamed as the Jagdamba Charity Trust and the Durga Trust. However, for purposes of convenience, the other two trusts are dealt with separately as there are some minor differences which require to be noticed.

(3.) From what has been stated above it would appear to follow that the assessed's claim for exemption for the assessment year 1961 -62 has to fail. This claim is based on the trust deed dated April 18, 1948. All the relevant clauses of the trust deed have been elaborately quoted and discussed in the judgment of this court in CIT v/s. : [1971]81ITR1(Delhi) . The claim for exemption based on s. 4(3)(i) of the 1922 Act was repelled by this court. This court held that, though a good many of these objects were of religious and charitable nature, the claim for exemption failed because of clause 5(a)(v) which specified the following objects :