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Commissioner of Income-tax Vs. Inland Agencies P. Ltd. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtChennai High Court
Decided On
Case NumberTax Case No. 22 of 1975 (Ref. No. 22 of 1975)
Judge
Reported in[1983]143ITR195(Mad)
ActsIncome Tax Act, 1961 - Sections 80G(5)
AppellantCommissioner of Income-tax
Respondentinland Agencies P. Ltd.
Excerpt:
- - in view of the failure on the part of the tribunal to consider the entire trust deed, it is not possible for us to answer the question referred to this court one way or the other......of another donation of rs. 1,500 for the assessment year 1968-69, both made to the tiruppani trust, referred similar questions for the opinion of this court. the said case was heard by a division bench of this court consisting of ismail and sethuraman jj. in t.c. no. 292 of 1972 : [1983]143itr193(mad) (supra). in the said case, though the copy of the trust fined was produced before the court, such a copy was not annexed to the statement of the case. the bench, by its judgment dated december 6, 1976, passed the following, order:'therefore, leaving the tribunal to go into the entire controversy again, so far as it has got a bearing on section 80g(5)(iii), we return the reference without answering the questions referred to this court. '5. as we have indicated above, the tribunal has.....
Judgment:

Ratnavel Pandian, J.

1. At the instance of the Commissioner of Income-tax, Tamil Nadu-I, Madras, the Income-tax Appellate Tribunal, Madras Bench A, has under Section 256(1) of the I.T. Act, 1961, referred the following questions for the opinion of this court:

'Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that S.R.M.M.C.T.M. Tiruppani Trust fulfils the cqnditions laid down in Section 80G(5)(iii) for the assessment year 1968-69, and donation paid by the assessed to it ranks for deduction under Section 80G '

2. The brief facts which led to this reference can be stated thus : The assessee, M/s. Inland Agencies Private Ltd., for the assessment year 1968-69, claimed a deduction under Section 80G of the I.T. Act, 1961, in respect of a donation of Rs. 2,000 paid by it to S.R.M.M.C.T.M. Tiruppani Trust. The ITO disallowed the assessee's Claim in the original assessment completed. On appeal, the AAG, finding that the assessment in the hands of the trust for the assessment year 1968-69, was not completed, directed the ITO to pass suitable orders under Section 80G on the conclusion of the assessment of the Tiruppani Trust for the assessment year 1968-69. On a second appeal preferred by the assessee against the above order, the Appellate Tribunal set aside the order of the AAC and remitted the matter to the file of the AAC for deciding whether the claim of the assessee could be allowed with reference to the provisions of Section 80G of the Act. Thereupon, the AAC, by his order, directed the ITO to allow deduction in respect of the donation of Rs. 2,000 made by the assessee to the aforesaid Tiruppani Trust. Aggrieved by the order, the Revenue went on appeal before the Tribunal which, following its earlier order passed in the case of M/s. Reliance Motor Co. Pvt. Ltd. held that the said donation was entitled to the deduction under Section 80G of the Act and accordingly dismissed the appeal of the Revenue. Hence this reference.

3. The Tribunal has not annexed a copy of the trust deed, which constituted the Tiruppani Trust in question to the statement of the case ; nor has it referred to the other objects of the Trust. It is not disputed before us that the question has to be decided having regard to all the terms of the trust deed including the objects for which the trust was created in view of the provisions contained in Section 80G(5)(iii) of the Act read with Expln. 3 thereto. In view of the failure on the part of the Tribunal to consider the entire trust deed, it is not possible for us to answer the question referred to this court one way or the other.

4. At the instance of the Addl. CIT, Madras, the Income-tax Appellate Tribunal in connection with the claim made by M/s. Reliance Motor Co. Pvt. Ltd., Madras, for a deduction in respect of a donation of Rs. 2,500 for the assessment year 1967-68, and a deduction in respect of another donation of Rs. 1,500 for the assessment year 1968-69, both made to the Tiruppani Trust, referred similar questions for the opinion of this court. The said case was heard by a Division Bench of this court consisting of Ismail and Sethuraman JJ. in T.C. No. 292 of 1972 : [1983]143ITR193(Mad) (supra). In the said case, though the copy of the trust fined was produced before the court, such a copy was not annexed to the statement of the case. The Bench, by its judgment dated December 6, 1976, passed the following, order:

'Therefore, leaving the Tribunal to go into the entire controversy again, so far as it has got a bearing on Section 80G(5)(iii), we return the reference without answering the questions referred to this court. '

5. As we have indicated above, the Tribunal has passed its order by following its earlier order passed in the case of M/s. Reliance Motor Co. Pvt. Ltd., which on reference has been remanded by the Bench of this court in T.C. No. 292 of 1972 (Addl. CIT v. Reliance Motor. Co. P. Ltd.) : [1983]143ITR193(Mad) .

6. Accordingly, we return the reference without answering the question referred to this court and direct the Tribunal to go into the entire controversy in this case having regard to all the terms in the trust deed. No costs.


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