COMMISSIONER OF WEALTH TAX VS BOMBAY CRICKET ASSOCIATION
2002 P T D 510
[250 I T R 863]
[Supreme Court of India]
Present: S. P. Bharucha, N. Santosh Hegde and Y.K. Sabharwal, JJ
COMMISSIONER OF WEALTH TAX and another
versus
BOMBAY CRICKET ASSOCIATION
Civil Appeal No.3314 of 1995, decided on 31/01/2001.
(Appeal by special leave from the judgment and order, dated July 28, 1986 of the Bombay High Court in W. P. No. 1811 of 1982).
Wealth tax ---
----Assessee---Association registered under Bombay Public Trusts Act-- Granted certificate under S.80G of Income Tax Act as established for charitable purposes and under S.10(23) that its income was exempt---Not assessable entity under Wealth Tax Act-- Notice to bring to tax wealth escaping assessment---Invalid---Wealth Tax Act, 1957, Ss.3, ,5(1)(i) & 17---Indian Income Tax Act, 1961, Ss.10(23) & 80G---BombaY Public Trusts Act, 1950.
The assessee, an association for promoting the game of cricket was registered under the Bombay Public Trusts Act, 1950 and under the Societies Registration Act, 1860. It was issued a certificate under section 80G of the Income Tax Act, 1961, certifying that it was established for charitable purposes as well as a certificate under section 10(23) of that Act whereby its income was exempt from income tax. The Wealth Tax Officer issued notices under section 17 of the Wealth Tax Act, 1957, seeking to bring to tax its net wealth on the ground that it had escaped assessment for assessment years 1973-74 to 1980-81. On. a writ petition, the High Court declared the notices to be illegal on the grounds: (i) that the properties held by the assessee were held under trust for charitable purposes and, therefore, exempt from a wealth tax in view of section 5(l) of the Wealth Tax Act, and (ii) that the assessee did not fall under any of the categories of taxable entities enumerated in section 3 and, therefore, the assessee was not assessable to wealth tax (see (1987) 166 ITR 336). The Department preferred an appeal to the Supreme Court. The Supreme Court dismissed the appeal.
Bombay Cricket Association v. B.R. Sonkar (1987) 166 ITR 356 affirmed.
S. Ganesh, Rajiv Tyagi, B:V.B. Das and Ms. Sushma Suri, Advocates for Appellant.
Shri Narain, Sandeep Narain and Mrs. Anjali Verma, Advocates for Respondent.
ORDER
We have read the judgment and order under appeal and heard learned counsel. There is no merit in the appeal.
The Civil Appeal is dismissed.
No order as to costs,
M. B. A. /1057/FC Appeal dismissed