9911796707
|
Home
Issues involved:
The issue involves a trust seeking a refund under section 48 of the Indian Income Tax Act, 1922 for the assessment year 1960-61, based on a donation made to another trust. The primary concern is whether the donation was made for charitable or non-charitable purposes. Judgment Details: The Income Tax Officer (ITO) initially taxed the donation amount at the maximum rate, stating that the recipient trust was a private trust and the donation's charitable nature was not proven by the assessee. Upon appeal to the Appellate Assistant Commissioner (AAC), the assessee argued that the donation was made in good faith to a charitable trust. However, the AAC held that the onus was on the assessee to prove the charitable purpose, which was not adequately demonstrated. The matter was then taken to the Tribunal, where it was argued that a previous order had recognized the recipient trust as a valid public charitable trust. The Tribunal, considering this previous order, ruled in favor of the assessee, stating that the donation was not for a non-charitable purpose. The Tribunal's decision was based on a deed of trust executed for the recipient trust, which contained public charitable and religious objects. The Tribunal concluded that the assessee was entitled to exemption for the donation amount. A separate judgment by the Hon'ble High Court highlighted a related case involving the recipient trust, where the Tribunal was directed to determine if the trust was charitable. The High Court, based on the factual contention of the assessee and the recognition of the recipient trust as charitable, upheld the Tribunal's decision to grant exemption for the donation amount. The High Court answered the question in the affirmative, ruling in favor of the assessee. Each party was directed to bear its own costs. Judge Suhas Chandra Sen concurred with the judgment.
|
