JUDGMENT :

S. Ravindra Bhat, J.

Index

I. Brief history of legislative changes and this court’s interpretation

A. Provisions of the Income Tax Act, 1922

B. The new law: Income Tax Act, 1961

C. The judgment in Surat Art Silk

D. Relevant changes brought about to the IT Act, 1961 (Finance Act, 1983 and 1991)

E. The judgment in Thanthi Trust

F. Deletion of certain exemptions: Section 10 (20A) and Section 10 (23)

G. Amendments to Section 2 (15) by Finance Act, 2008 (w.e.f. 01.04.2009)

II. Submissions of parties

A. Arguments on behalf of the revenue

B. Arguments of the assessee-organizations

C. Revenue’s rebuttal arguments

III. Analysis and reasoning

A. Aids to interpretation

(i) History of the legislation

(ii) Other extrinsic aids to construction of the statute

B. Interpretation of Section 2(15), the definition clause

Summation of interpretation of Section 2(15)

C. Sections 10, 11, 12, 12A, 12AA and 13 of the IT Act

Distinction between business held under Trust [Section 11(4)] and Trust carrying on business [Section 11(4A)]

D. What kinds of income or receipts may not be characterized as derived from