COMMISSIONER OF WEALTH TAX Vs. COIMBATORE ATHAR JAMATH

JUDGEMENT

(1.) THE assessee's claim for exemption under section 5(1)(i) of the Wealth -tax Act, 1957, had been rejected for the assessment years 1972 -73 to 1980 -81. The assessee appealed to the Commissioner, who agreed with the assessee that its assets are exempt. The Tribunal having upheld the order of the Commissioner, the Revenue is before us questioning the correctness of the Tribunal's view.

(2.) THE relevant facts have been set out in the order of the Commissioner. The appellant is a registered society under the Societies Act and has also been registered as a charitable society under section 12A of the Income -tax Act, by the Commissioner of Income -tax, Coimbatore, by an order dated October 7, 1985. It is seen from the rules of administration of the appellant -society that the dominant object of the society was to establish schools and charitable institutions in order to promote secular and religious education and also to help the needy persons of the Athar community among the Muslims. All the properties of the Jamath had been vested in the general body of the Mahasabhai and its executive committee as held by the Madras High Court in A.S. No. 222 of 1946. It is also on record that the appellant society had been running a boys school and a girls school and had also provided scholarship to students. The appellant -society also owns a mosque and a darga in which religious activities are carried on.

(3.) THE assets held by the assessee in this case, are not assets forming part of any business. There is no finding that any part of the assets of the trust are used for any purpose outside India. The activities of the trust are running schools and managing the mosque and darga in Coimbatore.