PRABODHAN PRAKASHAN Vs. ASSISTANT DIRECTOR OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
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V.K. Sinha, Accountant Member -
(1.) THIS is an appeal filed by the assessee against an order of the CIT(A) holding that the assessee is not entitled to exemption of income under Sections 11 and 12. of the Income-tax Act, 1961.
(2.) The assessee is a trust and the deed was drawn up on 20-10-1988. There are 18 objects enumerated in the trust deed but the main object relevant for our purpose is object No. (iv), which is reproduced below:
(iv) Promotion and propagation of ideologies, opinions and ideas for furtherance of national interest and for this publishing of books, annuals, magazines, weeklies, dailies and other periodicals as also establishing and running printing presses for the same.
According to the assessee, a daily newspaper "SAAMANA" was brought out for promotion and propagation of ideologies and opinions of national interest, as per a resolution passed on 20-10-1988 at the meeting of the Board of Trustees, an extract from which is reproduced below:
RESOLVED that in order to achieve the objects of the Trust, 'Prabodhan Prakashan' which are to promote and propagate ideologies and opinions of national interest, a daily should be started in Mumbai. The name of such daily should be 'SAAMANA. If the name 'Saamana' is not available, the names 'Jay Jaykar' or 'Onkar' should be registered with the Registrar of Newspapers of India. Mr. Subhash Desai is hereby authorised to make all applications, sign documents and do all incidental things in this regard.
(3.) A further resolution was passed in the meeting held on 20-10-1988 that the activity of publishing of Saamana shall always be carried on 'no profit no loss basis'. The relevant resolution is reproduced below:
Resolved that as per Clause 4 of the Trust Deed, the activity of publishing of Dainik Saamana shall be for the purpose of Promotion and Propagation of National Interest and hence, shall always be carried on No Profit No Loss Basis.;
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