SAKTHI CHARITIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee filed a petition under section 256(2) of the Income-tax Act, 1961, for directing the Tribunal to refer the following questions of law :

(2.) ALL these tax case petitions have to be rejected in view of the decision of this court i n a reference case arising out of the assessment proceedings in respect of the same assessee for the assessment year 1976-77. The decision is in Sakthi Charities v. CIT [1984] 149 ITR 624. In that decision, this court has taken the view that the founder of the trust did not provide for any alteration of the objects of the trust at any future time as the amending power contained in clause (xxx) of the trust deed did not cover clause III which was the objects clause and that once a trust had been founded with certain object, those objects could not be deleted even by the founder of the trust though it was possible to add some other charitable objects without any detriment to the original objects and thus the deed of rectification dated January 31, 1969, deleting the objectionable objects could not be said to be valid in law. The Division Bench further held that though the court under section 92, Civil Procedure Code, can give a direction which is necessary for the administration of any trust, it cannot in exercise of that power alter the objects of the trust. The court, therefore, confirmed the view of the Tribunal that the assessee-trust was not eligible for exemption for the assessment year 1976-77.