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TMI Blog1981 (9) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... 80G of the IT Act, 1961. (d) On 25th March, 1975, the Reserve Bank of India gave its permission to transfer the shares of various companies held by Lady MacRobert (deceased) and Sir Alexander MacRobert Memorial Trust to the charitable institutions mentioned in the assessee's letter dt. 5th March, 1975 to the Reserve Bank of India. (e) Pursuant to the aforesaid permission obtained from the Reserve Bank of India, the assessee trust donated the shares held by Lady R.W. MacRobert (deceased) and Sir Alexander MacRobert Memorial Trust to the following four charitable Institutions in India: Name of Donee Particulars of shares No. Of shares Delivered on Acknowledged on 1.Georgina MacRobert Memorial Hospital, Kanpur British India Corporation Ltd. Kanpur (BIC) Pref. shares 1,500 26th March, 1975 26th March, 1975 Elgin Mills Co. Ltd Vendor shares 2,550 26th March, 1975 26th March, 1975 Ordinary shares 350 26th March, 1975 26th March, 1973 2. Dr. Grahami's Home, Kalimpong BIC pref 1,500 31st March, 1975 10th April, 1975 Elgi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpanies Act was without any authority. Accepting the submission made, on behalf of the assessee, the AAC gave relief of Rs. 3,35,611 to the assessee in the following manner: "I have carefully considered the grounds taken by the WTO on one hand and the submissions made by the counsel for the appellant on the other. Since he share certificates were posted too the donees on their earlier request, on or before the valuation date and these shares were excluded from the balance sheet drawn in the books of the appellant maintained in the regular course of business, no further action is required to complete the transfer vis-a-vis transfer and transfers. In view of the case laws cited by the appellant's counsel there is no force in WTO's reliance on the provisions of Companies Act for determining the date of completion of transfer. As such, the appellant was correct in excluding these shares from the net wealth completed on the relevant valuation date. The appeal is, therefore, allowed. The appellant will get the relief of Rs. 3,35,611 in the computation of net wealth." 5. Being aggrieved by the order of the AAC, the Revenue has come up in appeal before us. The ld. Rep for the Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable institutions (reproduced above), the ld. Counsel for the assessee submitted that since Georgina MacRobert Memorial Hospital had acknowledged the receipt of the shares donated to it on 26th March, 1975 i.e., much before the relevant valuation date, the value of the shares donated to it cannot be included in the net wealth of the assessee. As regards the donations made to the three charitable institutions, the ld. counsel for the assessee submitted that, since the shares in question were sent to them at their request prior to the relevant valuation date, the gift was completed on or before the relevant valuation date and, therefore, the value of the shares so donated to them can also not be included in the net wealth of the assessee. For this proposition, he relied on the decision of the Hon'ble Supreme Court in the case of Ogale Glass Works (1954) 25 ITR 529 (SC). Relying on the decision in the case of Suraj Bai, the ld. counsel for the assessee submitted that in order to make the gift complete, it was not necessary that the transfer of shares should have been affected in the companies' share register on or before the due date. In this view of the matter, he urged that we sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontracts for the supply of the articles to the Government of India. The contract provided that "unless otherwise agreed between the parties, payment for the delivery of the stores will be made on submission of bill in the prescribed form in accordance with instructions given in the acceptance of tender by cheque on a Government Treasury in India or on a branch of the Reserve Bank of India or the Imperial bank of India transacting Government business." The assessee submitted the bill in the prescribed form and wrote on it as follows: "Kindly remit the amount by a cheque in our favour on any bank in Bombay." The assessee received cheques drawn on the Bombay-branch of the Reserve Bank of India along with a memo containing an acknowledgement form which was thus expressed: "The undersigned has the honour to acknowledge cheque No... dated... for Rs.... in payment of the bills noted in the first column in the reverse". The assessee endorsed the cheques in favour of the Aundh Bank, Ogalowadi branch, which in its turn endorsed them in favour of a Bombay Bank. The Bombay Bank cleared the cheques through the Clearing House in Bombay. The Aundh Bank credited the assessee's account on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at cheques drawn in Delhi and actually received by Post in Aundh would in the normal course of business be posted in some place outside British India. This posting in Delhi in law, amounted to payment in Delhi. In this view of the matter the referred question should, with respect, have been answered by the High Court in the affirmative." Attaching importance to the business usage as well as the request expressly made by the assessee in that case to "remit" the accounts of the bills by cheques, the Hon'ble Supreme Court held that the Post Office was the agent of the assessee and the cheques posted in Delhi amounted to payment in Delhi. In the instant case, since the assessee trust was not carrying on any business there cannot be any "business usage". Again, the aforesaid three charitable institutions had not expressly requested the assessee trust to send the shares certificates and other relevant documents to them by post. Under these circumstances, we fail to appreciate how the decision of the Hon'ble Supreme Court in Ogale Glass Work's could be of any help to the assessee trust. On the contrary, it is not disputed and cannot be disputed that the said three charitable institutio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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