- (1.) THE assessee, Gandu Mal Dharam Arth Trust, claims to be a charitable trust and thus entitled to exemption under Section 11 of the Income-tax Act, 1961.
(2.) THE record shows that the assessee-trust is said to have been originally founded by one Giano Devi, wife of Gandu Mal, in 1944. As the trust deed was not forthcoming, another trust deed was drawn up and executed on December 12, 1960. Smt Giano Devi, donated Rs. 30,000 to the trust. The objects of the trust, as set. forth in the trust deed, briefly stated, 'are the following : (i) to run dispensaries, hospitals or maternity homes for helping human beings and animals and to provide meals and clothing to the patients ; (ii) To dig wells to provide water to men and animals and also install chhabil of drinking water and arrange for bathing arrangements and provide food and accommodation for travellers ; (iii) To render financial aid to male and female students and to give scholarships, loans and alms to the poor and deserving students ; (iv) To give loans to the helpless and the poor including orphans and widows, to open reading rooms and library and arrange for supply of books and newspapers ; and (v) To spend money on all round welfare of the human race, particularly sufferers on account of earthquakes, floods, etc. 2. The trust deed further provided that it would be the duty of the trustees to invest the trust funds wholly or in part in some business. It was in pursuance of this clause that the trustees came to acquire the business known as Amrit Ice and General Mills, Rohtak, and this business thereafter was being run by the trustees. It is in respect of the income derived by the trust from this business that exemption was claimed under Section 11 of the Act.
(3.) IT is the finding of the Tribunal that no part of the income of the trust was ever actually utilised for any charitable purpose except a sum of Rs. 2,002 shown to have been paid as a donation to some school the name of which was not disclosed and that except for acquiring business and investing therein, no charitable purpose was sought to be pursued.;