NACHIMUTHU INDUSTRIAL ASSOCIATION VS COMMISSIONER OF INCOME-TAX
1999 P T D 2217
[235 I T R 190)
[Supreme Court of India]
Present: Suhas C. Sen and Syed Shah Mohammed Quadri, JJ
NACHIMUTHU INDUSTRIAL ASSOCIATION
Versus
COMMISSIONER OF INCOME-TAX Civil Appeal No.686 of 1981, decided on 17/12/1997.
(Appeal by Special Leave from the judgment and order, dated July 24, 1979 of the Madras High Court in T.C. No.45 of 1975).
Income-tax---
--Charitable purposes---Charitable trust---Exemption---Finding of fact that particular amount was not actually applied for charitable or religious purposes---Trust. was not entitled to exemption---Indian Income Tax Act, 1961, S.11.
Held, that the amount of Rs.2,50,000 was set apart as provision in the accounts of the assessee. The finding of fact was that the amount was not actually applied for charitable or religious purposes. Hence, the assessee was not entitled to exemption under section 11 of the Income Tax Act, 1961, in respect of that amount for the assessment year 1965-66.
Nachimuthu Industrial Association v. CIT (1980) 123 ITR 611 affirmed.
A. K. Verma, Advocate for JBD & Co., Advocates for Appellant.
JUDGMENT
The following two questions were raised before the Tribunal (see (1980) 123 ITR 611, 612):
"(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the amount of Rs,2,50,000 could not be said to have been applied for charitable or religious purposes in India within the meaning of section 11(1) of the Income Tax Act, 1961, in the accounting period relevant to the assessment year 1965-66?
(2)If the answer to question No.(1) is in the negative, whether the assessee was entitled to any further exemption from tax of any portion of its income for the assessment year 1965-66?"
The amount of Rs.2,50,000 was set apart as provision in the accounts of the assessee. The finding of fact is that the amount was not actually applied for charitable or religious purposes. In that view of the matter, the question was answered against the assessee.
We see no reason to interfere with this order of the High Court. The appeal is dismissed. There will be no order as to costs.
M.B.A./3003/FCAppeal dismissed.