1982 (2) TMI 43

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..... d the statement filed, he came across this item. According to him, this Lakshmi Nath Seva Trust was a private trust. He observed that the assessee could not prove that the donation was for any public charitable or religious purpose. He, therefore, taxed the sum of Rs. 10,850 at the maximum rate. Before the AAC, on appeal, the assessee contended that the donation to the trust was made under the belief that it was a charitable trust and that if a donation was made in good faith, it could not be said that the money had been applied for non-charitable purposes. In the alternative, it was pointed out that in the case of Shri Lakshmi Nath Seva Trust the AAC had held, in his order for the assessment year 1961-62, dated April 28, 1964, that the .....

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..... ansferred to the accounts of the trust, that it could be said that the trustees held the amount for religious or charitable purpose and that the exemption under s. 4(5)(i) in respect of the income of the said trust would come into operation as on that date. It is the conclusion regarding the nature or character of the said trust which was followed in the order under reference. The Tribunal, on the present occasion, could not go into the question as to whether the terms of the Lakshmi Nath Seva Trust deed were in any manner void or uncertain as the trust deed was not before it in the present occasion. In those circumstances, the following question has been referred to us " Whether, on the facts and in the circumstances of the case, the .....

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..... not disputed that the factual contention of the assessee was that it had paid on good faith to the representative, it is also not disputed before us, that whether it was charitable trust or not and whether it received money from the assessee for charitable purpose or not is not relevant for us; in the facts and circumstances of the case, we are of the opinion that the conclusion of the Tribunal that the assessee was entitled to exemption in respect of the sum of Rs. 10,850 paid to Shri Lakshmi Nath Seva Trust was right in law. The question is, therefore, answered in the affirmative and in favour of the assessee. In the facts and circumstances of the case, each party will pay and bear its own costs. SUHAS CHANDRA SEN J.-I agree. .....

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