| Case ID |
2aef74da-148a-43da-a636-3c0184257c98 |
| Body |
View case body. Login to View |
| Case Number |
D-2741 of 1935 |
| Decision Date |
|
| Hearing Date |
|
| Decision |
The court ruled that the income from the property held under the trust was not exempt under Section 4(3) of the Indian Income-tax Act, 1922, as the newspaper was run as an ordinary business and did not fulfill the charitable purposes defined in the law. The surplus profits were primarily used to strengthen the paper's reserves rather than to provide any public benefit. The judges emphasized that the trust did not serve the community in a charitable manner, as the newspaper competed commercially with others and was not provided at a reduced price to the public. |
| Summary |
In the case of Trustees of the Tribune, the Lahore High Court examined the nature of a trust established by a testator for the operation of a newspaper. The testator's will stipulated that the property in the stock and goodwill of the Tribune Press would vest in a committee of trustees tasked with maintaining the newspaper while promoting its liberal policy. However, since the testator's death, the newspaper operated as a standard business, competing with others in the market and providing no unique charitable benefit. The court found that the trust did not meet the criteria for exemption under the Income-tax Act, as the profits were not used for charitable purposes as defined by law. The judges highlighted that merely charging the public for the newspaper did not qualify as a charitable act, and the income was primarily used to fortify the newspaper's financial standing. This ruling underscores the importance of distinguishing between commercial enterprises and genuine charitable operations, particularly in the context of tax exemptions. The case serves as a critical reference for understanding the legal definitions of charity and public utility in trust law. |
| Court |
Lahore High Court
|
| Entities Involved |
Trustees of the Tribune
|
| Judges |
YOUNG, C.J.,
ADDISON, JJ.,
TEK CHAND, JJ.
|
| Lawyers |
M.C. Mahajan,
D.C. Ralli,
J.N. Aggarwal,
S.M. Sikri
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1935 SLD 30,
(1935) 3 ITR 246
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
Section 11,
Section 4(3)(i)
|