| Case ID |
16cfda0c-4f21-4ca8-a681-a77d156336f3 |
| Body |
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| Case Number |
EXPENDITURE-TAX REFERENCE No. 2 OF 1966 |
| Decision Date |
Sep 18, 1968 |
| Hearing Date |
|
| Decision |
The Gujarat High Court determined that the activities of Mridula A. Sarabhai constituted her occupation under section 5(a) of the Expenditure-tax Act, 1957. The court found that she was fully dedicated to her work for emotional integration between the people of India and Kashmir, and her expenditures related to this work were incurred wholly and exclusively for the purpose of her occupation, thus qualifying for exemption from expenditure tax. The Tribunal's earlier findings that the expenditures were those of a 'whole party or organization' were deemed unsupported by evidence, and it was clarified that the mere largeness of the expenditure did not negate its connection to her vocation. The decision was in favor of the assessee, affirming that the activities were continuous and integral to her life's work. |
| Summary |
This case revolves around Mridula A. Sarabhai's claim for exemption from expenditure tax under section 5(a) of the Expenditure-tax Act, 1957. The Gujarat High Court found that Sarabhai's dedicated work for emotional integration between India and Kashmir constituted her occupation. Despite the Expenditure-tax Officer and Tribunal's dismissal of her claims, the court determined that her activities were not momentary or isolated but part of her ongoing commitment to public work. The ruling emphasized that the absence of a profit motive does not exclude an activity from being classified as an occupation. Therefore, the expenditures incurred by Sarabhai for her work were rightly exempt from taxation. This case highlights the nuances of defining occupation within tax laws, particularly in relation to public service and advocacy. |
| Court |
Gujarat High Court
|
| Entities Involved |
Not available
|
| Judges |
P. N. Bhagwati, C.J.,
Divan, J.
|
| Lawyers |
R. J. Kolah,
K. H. Kaji,
J. M. Thakore
|
| Petitioners |
Mridula A. Sarabhai
|
| Respondents |
Commissioner of ExpenditurEtax
|
| Citations |
1969 SLD 511 = (1969) 73 ITR 85
|
| Other Citations |
CET v. Ambalal Sarabhai [1969] 73 ITR 78 (Guj.)
|
| Laws Involved |
Expenditure-tax Act, 1957
|
| Sections |
5(a)
|