Bharucha, J. - (1.) One S. K. Adityan founded a daily newspaper called the "Dina Thanthi" in 1942. On 1st March, 1954 he created a trust called the "Thanthi Trust". The property that he settled upon trust was the business of the said newspapers as a going concern. The objects of the Trust were to establish the said newspaper as an organ of educated public opinion for the Tamil reading public and to disseminate news and to ventilate opinion upon all matters of public interest through it. On 9th July, 1957 Adityan executed a supplementary deed of trust that declared that the Trust was irrevocable. On 28th July, 1961 Adityan executed another supplementary deed of trust. Thereby he directed that the surplus income of the trust, after defraying all expenses, should be devoted to the following purposes :- establishing and running a school or college for the teaching of journalism; - establishing and/or running or helping to run schools, colleges or other educational institutions for teaching arts and science; - establishing of scholarships for students of journalism, arts and science; - establishing and/or running or helping to run hostels for students; - establishing and/or running or helping to run orphanages; and - other educational purposes.
(2.) On 6th November, 1961 the Income- tax Officer proposed to disallow the claim of the Trust for exemption under Section 4(3)(i) of the Income Tax Act, 1922 for the Assessment Years 1955-56 to 1961-62. The Trust challenged the correctness of the tentative decision by filing a writ petition in the High Court of Judicature at Madras. On 25th June, 1961 the trustees of the Trust took out an originating summons in the High Court and therein, on 2nd March, 1962, the High Court upheld the validity of the supplementary deed of trust and held that the trustees of the Trust were bound to devote the surplus income of the Trust to the purposes mentioned therein. On 4th October, 1963 the High Court allowed the writ petition filed by the Trust and quashed the ITO's tentative decision (1964 (52) ITR 453). The claim for exemption made by the Trust under Section 4(3)(i) of the 1922 Act for the Assesment Years 1955-56 to 1961-62 was thereafter allowed.
(3.) For the Assessment Years 1962-63 the claim made by the Trust for exemption under Section 11 of the Income-tax Act, 1961 ('the Act') was allowed on 28th February, 1969. The ITO then impounded the books of accounts of the Trust relevant to the Assessment Years 1965-66 to 1967-68 and he demanded the production of books of account relevant to the Assessment Years 1962-63 to 1964-65. This was the subject matter of challenge in a writ petition filed by the Trust. On 23rd March, 1969 the Trust was issued three notices under Section 148 of the Act to reopen its assessments for the Assessment Years 1965-66 to 1967-68. These notices were challenged in a writ petition filed by the Trust. Notices were, thereafter, issued to the Trust to reopen its assessment for the Assessment Years 1956-57 to 1961-62 and these were the subject matter of a writ petition filed by the Trust. On 21st December, 1972 a Division Bench of the High Court of Madras quashed the notices for reopening the assessments for the Assessment Years 1956-57, 1958-59, 1960-61 and 1961-62. It upheld the notices that related to the Assessment years 1957-58, 1959-60, 1965-66, 1966-67 and 1967-68 (1973 (91) ITR 261).;