Judgement

RAMASWAMI, J. : This appeal is brought. by special leave, from the judgment of the Madras High Court dated October 25, 1961 in T. C. No. 62 of 1958.

2. The assessee, the East India Industries Limited, paid a donation of Rs. 7,500 to a trust called "the Agastyar Trust" and claimed exemption from tax under S. 15-B of the Income-tax Act, 1922,hereinafter called the Act . The trust had been created by the partners of a business firm K. Rajagopal and Company. This firm had been carrying on business in waste paper. Under the terms of the partnership it was setting apart 80 per cent of the profits for charitable and religious purposes. On July 1, 1944, a trust deed was executed by Venkatarama Chetti. The claim of the assessee to exemption from tax was rejected by the Income-tax Officer on the ground that the trust did not fulfil the conditions laid down under S. 15-B of the Act. The Appellate Assistant Commissioner to whom an appeal was preferred took the same view. The matter was taken up in further appeal to the Income-tax Appellate Tribunal which observed that in relation to the previous assessment year, it had held that the Agastyar Trust was a public trust and that any donat