S. 11: Property held for charitable purposes-Exemption-Objects -Merely on basis of one or two objects trust
cannot be held purely religious trust. Exemption allowed for earlier years as the facts are same exemption
cannot be denied for the relevant year. (S.13(1) (b))
Assessing Officer denied the benefit of exemption under section 11 of the Act on the ground that the objects of the assessee-trust included propagation of the Islamic faith and promotion of religious activities of the Islamic faith, that the trust was a mixed trust and the provisions of section 13(1) (b) were applicable. On appeal, the Commissioner (Appeals) took the view that the objects of the trust did not reveal that the benefits were meant only for a particular religious community but were available to the general public at large and that the provisions of section 13(1) (b) were not applicable. On appeal : The Tribunal held that major expenses of Trust was on conducting peace conference and merely on the basis of one or two objects Trust cannot be held purely religious trust. Even if the assessee was a mixed trust, section 13(1) (b) could not be applied as it was applicable to a purely charitable trust therefore benefit of section 11 could not be denied to the assessee under section 13 (1) (b). Exemption was allowed in earlier years the principle of consistency was also applicable. Accordingly the appeal of department was dismissed. (A. Y. 2008-2009)
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