treatment of .
till the amending act came into force the incometax department gave exemption from assessment for the 60 per cent of the income under s. 4 3 i of the act but after the amending act came into force which was given retrospective operation from april 1 1952 the said depart ment refused to give exemption from assessment even in regard to the 60 per cent of the income.
apart from the properties mentioned in schedule b c and d all other properties movable as well as immovable belonging to me i hereby companystitute into a trust to be managed by the trustees as per the directions in the will.
the relevant parts of the will read will executed by panniampalli warriath deceased parvathi alias kunkikutty warassiars son sri sankunny warriar knumbern as vaidyaratnam sri p. s. warriar residing at puthan warian in kottakkal amsom and desom of ernad taluk.
the appeals filed against the orders of the appellate assistant companymissioner to the income tax appellate tribunal madras were companysolidated and by its order dated february 28 1958 the said tribunal allowed the appeals exempting 60 per cent of the said income from assessment to income tax under s. 4 3 i of the act.
i hereby numberinate the following persons as the first board of trustees the above trust is to be managed and companyducted according to the terms and companyditions detailed below a to f the primary and chief objects of the trust are to carry on for ever the two institutions viz.
one p. s. warriar an eminent ayurvedic physician carried on business in ayurvedic drugs under the name and style of arya vaidya sala and was also running a hospital named arya sikitsa sala and a school called arya vaidya pata sala.
to companyduct research into arya vaidyam with a view to make it more and more useful to the public.
hence the present appeals.
the references made to the high companyrt of kerala were dismissed.
it is my intention that except the properties mentioned in pares 4 and 5 b c d schedule all my properties are to be included in the trust and therefore even if some item of property is left out by inadvertence it is also to be deemed included in the trust and vested in the trustees.
they are described in schedule e and on my demises those properties will vest in the trustees.
appeals by special leave from the judgment dated january 20 1961 of the kerala high companyrt in income tax referred case number 16 of 1959.
the trustees are number bound to pay any amount to the said two tavazhies after the expiry of 20 years.
to carry out the said services with the help of an arya vaidyan and necessary operations with the help of an allopathi doctor.
provisions regarding the trust.
606 610 of 1963.
a division bench of the madras high court in thiagesar dharma vanikam v. companymissioner 1 1960 38 i.t.r.
the said warriar died on january 30 1944 after executing a will wherein he created a trust in respect of his properties including the arya vaidya sala.
b of the proviso was attracted but the conditions laid down thereunder were number companyplied with.
the work of arya vaidya sala number consists of 1.
e schedule all remaining properties companystituted into the trust.
a division bench of the kerala high companyrt in dharmodayam co. v. companymissioner of income tax kerala expressed much to the same effect.
civil appellate jurisdiction civil appeal number.
to take in at least 12 poor patients at any time give them lodging and board and also free medicines and treatment free the in patient department .
patients receiving from them compensation according to their capacity and means 4.
the arya vaidya sala and the arya vaidya hospital on the lines followed number with the object of enlarging and increasing their scope and utility.
he gave directions to the trustees appointed under thesaid will to companyduct the said business and to disburse theincome therefrom in certain proportions to the arya vaidya sala arya sikitsa sala and arya vaidya pata sala and to his descendants.
t. desai and sardar bahadur for the respondent in all the appeals .
392 405 466 410.
rajagopala sastri learned companynsel for the revenue contends that under s. 4 3 i of the act whereunder the said income is given exemption from taxation the property wherefrom the income is derived shall have been held under trust wholly or in part for religious or charitable purposes that the business run under the name and style of arya vaidya sala was number capable of being held in trust that even if it was capable of being held under trust it was number wholly or in part so held in trust for religious or charitable purposes as only a part of the income was directed to be spent for religious or charitable purposes and that in the circumstances cl.
give treatment and medicines to all persons seeking them receiving from such of them as are able such remuneration as they can afford including companyt of medicines.
the 40 per cent of the profit so earmarked for 20 years and so released after the expiry of 20 years are therefore to be utilised for the development of the arya vaidya sala and arya vaidya hospital according to the discretion of the trustees.
broadly stated 60 per cent of the income was directed to be spent on the said three institutions and 40 per cent to be given to his descendants.
the judgment of the companyrt was delivered by subba rao j. these appeals by special leave raise the question of the companystruction of the provisions of s. 4 3 of the indian income tax act 1922 hereinafter called the act as am ended by the indian income tax amendment act 1953 hereinafter called the amending act.
preparation of ayurvedic medicines 2.
n. rajagopal sastri and r. n. sachthey for the appellant in all the appeals .
for the assessment years 1954 55 and 1955 56 the income tax officer assessed the entire income from the said properties and in respect of the income pertaining to the assessment years 1952 53 and 1953 54 which had already been assessed in the usual companyrse giving exemption for the said 60 per cent of the income the income tax officer issued numberices under s. 34 of the act and by two separate orders dated september 28 1956 assessed the said 60 per cent of the income on the basis of escaped assessment.
sale of the same 3.
on december 20 1956 for the assessment year 1956 57 the income tax officer in the like manner assessed the entire income from the said properties.
the facts are as follows.
april 29 1964.
to examine poor patients free of charge to prescribe treatment for them and give medicines gratis out patient department .
the appeals filed by the assessee against the said orders of assessment to the appellate assistant company missioner were dismissed.
