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Issues:
1. Whether the donation received by the assessee trust should be considered as income for tax assessment purposes. Analysis: The case involved the assessment of Punyarpan Charitable Trust for the assessment year 1968-69. The trust received a donation of Rs. 45,000 in the form of 450 cumulative preference shares of Kamala Mills Ltd. from another charitable trust. The Income-tax Officer added this amount to the taxable accumulation of the assessee. The Appellate Assistant Commissioner upheld the assessment, stating that voluntary contributions should be considered income. The assessee then appealed to the Income-tax Appellate Tribunal, arguing that the donation was intended to augment the corpus of the trust and should not be treated as income. The Tribunal, citing a decision of the Allahabad High Court, ruled in favor of the assessee, directing the deletion of the amount from taxable accumulation. The main legal question raised was whether the donation received should be deemed income derived from property for tax assessment purposes. The Revenue contended that there was insufficient evidence to show that the donation was intended to be added to the corpus of the trust. However, the assessee's advocate cited several High Court decisions, including those from Gujarat, Kerala, Delhi, and Rajasthan, which supported the view that donations specifically given to augment the corpus of a trust should not be treated as income. Ultimately, the High Court agreed with the Tribunal's decision, noting that the donation was intended to augment the corpus of the assessee and not used for other purposes. The Court found no reason to deviate from the precedents set by other High Courts and ruled in favor of the assessee, holding that the donation should not be considered income for tax assessment purposes. The judgment was delivered by Judges Dipak Kumar Sen and Mukul Gopal Mukherjee, with Mukherjee J. concurring with Sen J.'s decision.
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