| Case ID |
ffe64bbc-8fcc-47ae-9fa9-30cf85451f21 |
| 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 decision in this case was that the assessee, being a religious and charitable trust, was entitled to exemption under section 11 of the Income-tax Act, 1961. The earlier decisions by the Tribunal and the High Court for the assessment year 1961-62, which were based on the concession of the assessee that certain objects of its trust deed were not charitable, could not operate as res judicata because the decision of the Gujarat High Court had been overruled by the Supreme Court. Therefore, the Tribunal was correct in allowing the exemption under section 11 for the assessment year 1970-71. |
| Summary |
The case involved the Allahabad High Court deciding on whether the income of a trust created by Surji Devi Kunji Lal Jaipuria was exempt from tax under section 11 of the Income-tax Act, 1961. The trust was initially denied exemption for assessment year 1970-71 based on earlier decisions from assessment year 1961-62, where the assessee conceded that some trust objects were non-charitable. However, the Supreme Court later overruled the Gujarat High Court's decision that formed the basis of the earlier concession. The Tribunal ruled in favor of the assessee, stating that the trust's objectives, which included social welfare and helping the Vaishya community, were charitable. The High Court upheld this decision, affirming that a purpose need not solely benefit the poor but should benefit a section of the public to be considered charitable. This case highlights the importance of judicial precedents and the concept of res judicata in tax exemption cases. Keywords: Allahabad High Court, Income-tax Act, charitable trust, tax exemption, res judicata, judicial precedent, Vaishya community. |
| Court |
Allahabad High Court
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| Entities Involved |
Vaishya community
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| Judges |
B.P., JEEVAN REDDY, C.J.,
R.A. SHARMA, J.
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| Lawyers |
Not available
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Surji Devi Kunji Lal Jaipuria
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| Citations |
1990 SLD 2280,
186 ITR 728
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| Other Citations |
Ahmedabad Rana Caste Association v. CIT [1971] 82 ITR 704 (SC),
CIT v. Ahmedabad Rana Caste Association [1968] 70 ITR 503 (Guj.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
11,
256
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