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T.A.BUKTE, M.A.AJINKYA
Income-tax Officer – Appellant
Versus
Maharashtra State Warehousing Corporation Karamchari Welfare Fund – Respondent


Advocates Appeared:
K. Srinivasan,S. C. Bhatia, G. B. Gadgil

ORDER
M.A. Ajinkya, Accountant Member - These are departmental appeals against the consolidated order of the AAC of IT, Pune Range Pune, for the assessment years 1977-78, 1980- 81, 1981-82 and 1982-83. The effective ground raised in these appeals is that the AAC erred in directing the ITO to assess the income of the assessee at Nil for all the assessment years concerned after holding that the assessee is entitled to benefits of exemptions under sections 11 and 12 of the Income-tax Act being a public charitable trust. It is the case of the Department that the Trust is created for the welfare of the employees of Maharashtra State Warehousing Corporation and their relatives and, therefore, an element of profit is involved in the objects of the Trust and, therefore, the assessee trust is not a charitable trust within the meaning of section 2(15) of the Income-tax Act. The facts in this regard may briefly be stated.
2. Maharashtra State Warehousing Corporation Karamachari Welfare Fund was established for the benefit of the employees of Maharashtra State Warehousing Corporation. The employees of the Corporation used to contribute out of their salary income and the fund so created is spent




























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