| Case ID |
e9b630d4-66ad-473a-b2a5-26652864133f |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The case revolves around the taxation of donations received by a charitable trust under section 12(2) of the Income-tax Act, 1961. The Tribunal determined that the donation of shares towards the corpus of the trust could not be taxed as deemed income. Upon reference by the revenue, the Bombay High Court upheld the Tribunal's decision, referencing the earlier case of Trustees of Kilachand Devchand Foundation v. CIT. The court concluded that the donation of shares valued at Rs. 2,50,000 could not be treated as taxable income for the trust, thereby ruling in favor of the assessee. No costs were awarded in this decision. |
| Summary |
In the landmark case before the Bombay High Court, the court examined the implications of section 12(2) of the Income-tax Act, 1961, specifically concerning charitable trusts and the treatment of voluntary contributions. The case arose when the Commissioner of Income Tax challenged the Tribunal's ruling that donations in the form of shares received towards the corpus of a charitable trust should not be taxed as deemed income. The court concluded that based on precedent set in the Trustees of Kilachand Devchand Foundation v. CIT, the donation of shares amounting to Rs. 2,50,000 was not taxable under the provisions of the Income-tax Act. This decision reinforces the legal framework surrounding charitable donations and the tax obligations of trusts, providing clarity and guidance for future cases in similar contexts. Keywords such as 'Income-tax Act', 'charitable trust', 'taxation of donations', and 'Bombay High Court' are crucial for understanding the implications of this ruling and its relevance in the field of tax law. |
| Court |
Bombay High Court
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| Entities Involved |
AMar court Charitable Trust
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| Judges |
S.P. Bharucha,
T.D. Sugla
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| Lawyers |
G.S. Jetley,
Mrs. M. Singh,
K.C. Sidhwa,
V.C. Kotwal
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
AMar court Charitable Trust
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| Citations |
1989 SLD 2433,
(1989) 177 ITR 85
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| Other Citations |
Trustees of Kilachand Devchand Foundation v. CIT [1988] 172 ITR 382 (Bom.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
12(2)
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