| Case ID |
02477320-f259-4254-89c7-50335abdf52e |
| Body |
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| Case Number |
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| Decision Date |
Dec 17, 1982 |
| Hearing Date |
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| Decision |
The court held that the donation made to the Bihar State Board of Digambar Jain Religious Trusts with a specific direction that it would form part of the corpus of the trust cannot be treated as income under the Income-tax Act or the Bihar Hindu Religious Trusts Act. The fee under section 70(1) is only leviable on the net income of the trust, not on funds designated as corpus. Thus, the amount donated was not subject to fee assessment, favoring the trust in this case. |
| Summary |
This case revolves around the interpretation of the term 'income' in relation to donations made to religious trusts under the Bihar Hindu Religious Trusts Act, 1950, and the Income-tax Act, 1961. A significant donation was made to the Bihar State Board of Digambar Jain Religious Trusts, designated explicitly as part of the trust's corpus. The court ruled that such contributions should not be classified as 'income' for tax purposes, thereby exempting the trust from fees based on these amounts. The ruling emphasizes the importance of the intent behind contributions and the legal definitions that govern them, aligning with fiscal interpretations that favor the assessee. This case highlights critical aspects of tax law and trust management, particularly for religious entities, and reinforces the legal distinction between income and corpus in trust law, making it a significant reference point for similar cases in the future. |
| Court |
Patna High Court
|
| Entities Involved |
Bihar State Board of Digambar Jain Religious Trusts,
District Judge, Singhbhum
|
| Judges |
S.B. Sinha, J.
|
| Lawyers |
Debi Prasad,
Mrs. Jaya Roy
|
| Petitioners |
Bihar State Board of Digambar Jain Religious Trusts
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| Respondents |
District Judge, Singhbhum
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| Citations |
1991 SLD 1298 = (1991) 187 ITR 295
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| Other Citations |
Barclays Bank Ltd. v. Quistclose Investments Ltd. [1968] 3 All ER 3 WLR 1097; [1970] AC 567 (HL)
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| Laws Involved |
Income-tax Act, 1961,
Bihar Hindu Religious Trusts Act, 1950
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| Sections |
2(24),
70(1)
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