| Case ID |
25ee41ae-2924-43dc-9505-f91954e77810 |
| Body |
View case body. Login to View |
| Case Number |
I.T. REFERENCE No. 37 OF 1970 |
| Decision Date |
Jan 01, 1984 |
| Hearing Date |
|
| Decision |
The Rajasthan High Court held that the assessee, Maharaja Shri Umed Mills, was entitled to a rebate under section 15B of the Indian Income-tax Act, 1922, for donations made to charitable institutions including Bangur High School and hospitals. The court emphasized that the substance of the transaction should be considered over the form, indicating that donations made in kind, such as construction of buildings, could still qualify for tax rebates. The donations were deemed to be for charitable purposes, benefiting the public at large, and the involvement of the assessee's employees did not negate the charitable nature of the contributions. |
| Summary |
The case revolves around the interpretation of section 15B of the Income-tax Act, 1922, concerning tax rebates for donations made to charitable institutions. The Rajasthan High Court examined the nature of donations made by Maharaja Shri Umed Mills, which included significant contributions towards the construction of a school and hospitals. The court ruled that the donations were indeed charitable and should qualify for tax rebates, irrespective of whether the contributions were made in cash or through construction. This ruling underscores the importance of the intent behind donations and their ultimate benefit to society. The case is significant for taxpayers looking to understand the nuances of charitable contributions and tax exemptions in India. It highlights how the courts assess the substance of transactions over their form, ensuring that genuine charitable intentions are rewarded with appropriate tax benefits. |
| Court |
Rajasthan High Court
|
| Entities Involved |
Maharaja Shri Umed Mills,
Bangur High School,
Arogya Bhawan Hospital,
Bangur Hospital
|
| Judges |
Dwarka Prasad, Actg., C.J.,
Kanta Bhatnagar, J.
|
| Lawyers |
J.P. Joshi for the Applicant,
S.L. Choudhary for the Respondent
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Maharaja Shri Umed Mills
|
| Citations |
1984 SLD 625,
(1984) 148 ITR 72
|
| Other Citations |
CIT v. Associated Cement Co. Ltd. [1968] 68 ITR 478 (Bom.),
CIT v. Bangalore Woollen, Cotton & Silk Mills Co. Ltd. [1973] 91 ITR 166 (Mys.),
CIT v. Amonbolu Rajiah [1976] 102 ITR 403 (AP),
CIT v. Khandelwal Laboratories (P.) Ltd. [1979] 118 ITR 531 (Bom.),
Addl. CIT v. Abhai Maligai [1978] 113 ITR 737 (Mad.),
CIT v. Traub (India) (P.) Ltd. [1979] 118 ITR 525 (Bom.),
Saurashtra Cement & Chemical Industries Ltd. v. CIT [1980] 123 ITR 669 (Guj.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
80G
|