1982 (2) TMI 161

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..... sessment for the assessment year 1968-69. 2. Sundaram Motors (P.) Ltd., since succeeded to by T.V. Sundaram Iyengar Sons Ltd. had made donations of Rs. 50,000, Rs. 50,000 and Rs. 25,000 to Andhra Pradesh Congress Committee, Mysore State Congress Committee and All India Congress Committee, respectively, during the accounting year relevant to the assessment year 1968-69 under consideration. The .....

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..... litical party does not satisfy the condition laid down in section 5(1)(xiv) of the Gift-tax Act. It has since been brought to the notice of the Board that certain companies, public as well as private, have amended their memorandum and articles of association so as to empower them to subscribe or contribute money to public, political or other useful institutions, objects and purposes, and thereafte .....

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..... P. No. 329/10/71-GT, dated 9-6-1972, though the Instruction withdrawing the circular does not appear to have been published. At any rate, the circular dated 5-1-1960 was in force during the accounting year under consideration. The requirement of the circular is that the donations should have been made under the authority of a specific clause in the memorandum and articles of association in order t .....

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..... otherwise expedient." Hence the power "to make donations to such persons and in such cases, as the company may think conducive to any of its objects or otherwise expedient" is large enough to empower these donations to political parties. It is also not the case of the authorities that there is no such power with the company. In fact, there was also no bar under the Indian Companies Act against .....

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..... t day of the assessment year, it should be applied even if such circular is subsequently withdrawn. The assessee is, therefore, entitled to succeed on the basis of circular alone. It is in this view that we consider it unnecessary to deal with the arguments of authorities or the other arguments of the learned counsel questioning the conclusion that there had been no gifts and that, at any rate, su .....

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