| Case ID |
37d3b8bc-6b54-4f9b-b1c8-ad962f882522 |
| Body |
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| Case Number |
Income tax Reference Application No. 766 of 1972 |
| Decision Date |
Feb 15, 1984 |
| Hearing Date |
|
| Decision |
The court ruled that the foundation was entitled to the exemption from income tax under the provisions of section 4(3) of the Income Tax Act, 1922. The court emphasized that the primary objects of the foundation were charitable and religious in nature. It was noted that the foundation's income and property were to be applied solely towards its charitable objectives, and no part of it could be distributed as profit to its members. The tribunal's decision to deny tax exemption was overturned, reinforcing the principle that the predominant object of an organization determines its eligibility for tax exemptions. The ruling highlighted the importance of interpreting the clauses of the foundation's memorandum collectively to ascertain its true charitable nature. |
| Summary |
This case revolves around the tax exemption eligibility of Amin Mohiuddin Foundation Ltd. under the Income Tax Act, 1922. The Sindh High Court examined the foundation's objects, which were primarily charitable and religious, and assessed whether its income could be exempt from taxation. The court found that the foundation had been approved as a charitable institution, and its income was exclusively used for charitable purposes, thereby qualifying for tax exemption. The decision emphasized that even if some activities were non-charitable, the dominant charitable purpose was paramount. The court also clarified that the interpretation of the foundation's memorandum should not isolate certain clauses but should view them in conjunction with the overarching charitable objectives. This case sets a significant precedent in the understanding of tax exemptions for charitable organizations, particularly in the context of income derived from donations and the application of such income towards charitable activities. |
| Court |
Sindh High Court
|
| Entities Involved |
Amin Mohiuddin Foundation Ltd.,
Tax Commissioner of Income Tax, Karachi (East)
|
| Judges |
AJMAL MIAN,
HAIDER ALI PIRZADA
|
| Lawyers |
Khalid Anwar,
Shaikh Haider Ali
|
| Petitioners |
AMIN MOHIUDDIN FOUNDATION LTD.
|
| Respondents |
TAX COMMISSIONER OF INCOME TAX, KARACHI (EAST)
|
| Citations |
1984 SLD 61,
1984 PTD 282,
(1984) 50 TAX 45
|
| Other Citations |
Bai Hirbai Ruhim Aloo Paroo and another v. Commissioner of Income tax, Bombay City 1168 1 T R 821,
Commissioner of Income tax, Calcutta v. Board of Mutwallis to the Wakf Estate, Ebrahim Solaiman Saleji 64 I T R 758,
The Religious Tract and Book Society of Scotland v. Forbes 3 Tax. Cas. 415,
Glasgow Heritable Trust Ltd. v. Commissioner of Inland Revenue 35 Tax Cas. 196,
(Maulana) Muhammad Ibrahim Riza Malak v. Commissioner of Income tax, Nagpur, A I R 1930 P C 226,
All India Spinners' Association v. Commissioner of Income tax, Bombay, 12 I T R 482,
Commissioner of Income tax Punjab v. Thakur Dais Bhargava 24 I T R 275,
Commissioner of Income tax, West Bengal v. Sardar Bahadur Sardar Indra Singh Trust 29 I T R 781,
Commissioner of Income tax Bombay City v. Breach Candy Swimming Bath Trust, Bombay 27 I T R 279,
Royal College of Surgeons of England v. National Provincial Bank Ltd. and others (1952) 1 All E R 984,
Commissioner of Inland Revenue v. City of Glasgow Police Athletic Association 34 Tax Cas 76,
The Trustees of the Tribune 7 I T R 415,
Yogiraj Charity Trust v. Commissioner of Income tax, New Delhi (1977) 96 Taxation 67 (S C ind.),
Commissioner of Income tax, East Pakistan, Dacca v. Narayanganj Chamber of Commerce and Industries, Narayanganj 1968 P T D 513,
Commissioner of Income tax, Madras v. Andhra Chamber of Commerce 1965 P T D 481
|
| Laws Involved |
Companies Act, (VII of 1913),
Income Tax Act, 1922
|
| Sections |
26,
15,
4(3),
15D,
13
|