Commissioner of Income-tax Vs. Bhartiya Khatri Sewa Trust - Court Judgment

Excerpt:
- - , spending money on the marriages of girls of the vaisya community and there this court held that to make a purpose charitable, it is not necessary that it should be beneficial to the poor only and what is required is benefit to a section of the public as distinguished from specified individuals.om prakash, j. 1. at the instance of the revenue, the following question has been referred to this court by the appellate tribunal, relating to the assessment years 1973-74 and 1974-75, for its opinion :'whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal is correct in holding that the assessee-trust was a charitable trust for the assessment years 1973-74 and 1974-75 ?'2. the facts as gleaned from the order of the appellate tribunal are that a trust was created by a deed dated december 1, 1959, which was executed by sri damodar das khanna and smt. uma shankar mehrotra. before the assessing authority, the assessee claimed that the objects of the trust were charitable in nature in entirety. one of the objects of the trustwas to spend money on the marriages of girls belonging to khatri community. taking exception to such object of the trust, the income-tax officer held that the trust was not charitable and, therefore, exemption for both the years as claimed by the assessee-trust was denied.3. the dispute was then carried in appeal to the appellate assistant commissioner who affirmed the order of the income-tax officer for the assessment year 1973-74, but accepted the claim of the assessee for the assessment year 1974-75.4. cross appeals were filed before the appellate tribunal, one by the revenue for the assessment year 1974-75 and the other by the assessee for the assessment year 1973-74. both the appeals were decided by the appellate tribunal in favour of the assessee-trust, holding that the object of the trust, namely, spending money on the marriage of girls belonging to the khatri community, was charitable and the assessee-trust could not be characterised as non-charitable on that ground. the tribunal held that amongst hindus marriage of children was a sacred obligation and that was a necessity and, therefore, one of the objects being spending money on marriages of girls, it did not render the trust to be non-charitable.5. this is how, at the instance of the revenue, the tribunal, pursuant to the order of this court, made a reference for both the years.6. the aforesaid question is not res integra in so far as this court is concerned. this question came up before this court in the case of cit v. surji devi kunji lal jaipuria charitable trust (no. 1) : [1990]186itr728(all) . one of the objects of the trust in this authority was just identical, i.e., spending money on the marriages of girls of the vaisya community and there this court held that to make a purpose charitable, it is not necessary that it should be beneficial to the poor only and what is required is benefit to a section of the public as distinguished from specified individuals. this court also observed that marriage of children is considered as one of the obligatory actions of hindus and is a religious duty of a high order ; giving financial and other help on the occasion of marriage is regarded as a part of religious charitable activities. this court, therefore, concluded that such an object was charitable.7. we are in respectful agreement with the view taken by this court earlier in the case of cit v. surji devi kunji lal jaipuria charitable trust (no. 1) : [1990]186itr728(all) and following the said decision, we affirm thedecision of the appellate tribunal for both the assessment years 1973-74 and 1974-75.8. the common question referred to this court is, therefore, answered against the revenue and in favour of assessee. there will be no order as to costs.