COMMISSIONER OF WEALTH TAX Vs. PARAMHANS ASHRAM TRUST

JUDGEMENT

(1.) THE Tribunal has referred the following question of law arising out of its orders dt. 23rd July, 1985, and 25th Sept., 1980, in respect of the asst. yrs. 1970 -71 to 1978 -79, under S. 27(1) of the WT. Act, 1957 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the decision of the AAC that the assessee is a public charitable and religious trust and its properties are entitled to exemption under S. 5(1)(i) of the WT Act, 1957 -

(2.) THE dispute is with regard to the claim of the assessee for exemption from tax, of assets under s. 5(1)(i) of the WT Act, in respect of the properties held by the trust. The WTO found that except for agricultural land valuing Rs. 39,000 the remaining properties of the assessee were not exempt. The matter under the IT Act, 1961, was considered by this Court in the case of the assessee (CIT vs. Paramhans Ashram Trust (1993) 113 CTR (Raj) 433 : (1993) 203 ITR 711) in D. B. I. T. Reference No. 48 of 1982 decided on 8th Dec., 1992, and it was held that the assessee is a charitable trust and entitled for exemption of income -tax under S. 11 of the IT Act. The provisions of S. 5(1)(i) are for exemption to any property held by a trust which is held for public purpose by a charitable trust of religious nature.

(3.) SINCE the assessee has been held to be a public charitable/religious trust, the exemption under s. 5(1)(i) of the WT Act is also allowable. Accordingly, we are of the view that the assessee is entitled for the exemption. Accordingly, the reference is answered in favour of the assessee and against the Revenue. No order as to costs.