THAYAKA TRUST Vs. STATE OF KERALA

JUDGEMENT

(1.) The matter arises under the Kerala Agricultural Income Tax Act, 1991 (hereinafter referred to as 'the Act). The question involved herein relates to the issuance of a notification as provided under S.9(2) of the Act. The petitioner is a trust constituted by a deed of trust dated 24.4.1986 (Ext. P - 2). It is registered as a charitable trust under S.12A of the Income Tax Act, 1961 (Ext. P1). It is stated that the trust was constituted for helping the poor and needy in rural areas. The main objects of the trust as stated in Clause VI of the trust deed are as follows:

(2.) It is stated that the Kerala Agricultural Income Tax Act, 1991 (Act 15 of 1991) has introduced a provision in S.9(2) of the said Act providing for exemption of funds made to Trusts established for charitable purposes and notified by the Government in this behalf in the Gazette. As per S.9(2) of the Act, in computing the total agricultural income of a person, there shall be deducted from his agricultural income any sum not exceeding one sixth of the total agricultural income of the assessee or twenty thousand rupees whichever is less, paid by him in the previous year out of his agricultural income as donation to a trust, institution or a fund established for charitable purposes and notified by the Government in this behalf in the Gazette.

(3.) In view of the above said section, the petitioner Trust made an application (Ext. P - 8) before the Hon'ble Minister for Finance on 30.11.1991 for issuing a notification under S.9(2) of the Act in the Official Gazette. It is stated that along with the said application the petitioner had produced the copies of the trust deed, copies of the exemption certificate issued under S.80G of the Income Tax Act, 1961 and copies of the annual statement of accounts for the years upto 31.3.1991. It is also stated that the said application was forwarded by the Finance Minister to the Secretary to Government, Taxes Department. The said application was rejected by the Government by communication dated 30.9.1996 (Ext. P9). The petitioner has filed this Original Petition challenging Ext. P - 9 communication issued by the second respondent. The petitioner has also sought for a direction to the respondents to allow the petitioner the benefit of notification contemplated under S.9(2) of the Agricultural Income Tax Act as claimed in the petition.