M.C. Agarwal, Judicial Member - (1.)THESE are two appeals by the Revenue arising out of the assessee's assessments for assessment years 1981-82 and 1983-84.
(2.)We have heard the learned Departmental Representative and the learned counsel for the assessee and have perused the material placed before us. The identical ground raised in the two appeals is as under: -
On the facts and in the circumstances of the case, the learned CIT(A) erred in allowing the exemption Under Section 11 of the Act to the assessee as the object of the assessee are political.

As is evident from the ground raised by the Revenue the revenue's contention merely is that the assessee is not a charitable institution.

The assessee is a trust society established by the late Lala Lajpat Rai, a great national leader and freedom fighter, somewhere in the year 1921 and has all along been treated as a charitable institution. The objects of the assessee society are narrated in para 4 of its constitution as below: -

(3.)THE object of the society shall be to enlist and train national missionaries for the service of the motherland. It shall be their duty to work for the educational, cultural, social, economic and political advancement of the country under the supervision of the society.
4. THE ITO while dealing with the aforesaid clause observed that it is a political society and not a charitable society. For this view he took note of the fact that the assessee publishes a daily newspaper named "Samaj" and it is running a foundry in which types for the printing presses are manufactured and the society is also running a printing press in the name of Satyawadi Press. THEse activities, according to the ITO, were being carried on as commercial activities and for profit. THE ITO, however, has not observed that any part of the income of the assessee is being ultimately applied for purposes that are not charitable. THE ITO in the two years under consideration held the income of the assessee to be not exempt from tax and in determining a taxable income he excluded from the gross total income as shown by the assessee in its income and expenditure account only the agricultural income and a few expenses. In other words even voluntary contributions from other persons, donations and grants received from the Government itself have been held to be taxable, although they are patently not of the nature of income. Voluntary contributions have the nature of income only in the case of a charitable institution and not otherwise. THE assessee appealed to the CIT(A) who accepted the assessee's claim of exemption Under Section 11 by a brief order, in which he purports to have followed an earlier order of his predecessor for assessment years 1973-74 to 1979-80.