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TMI Blog1966 (8) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ts donated to 'Jalan Charity Trust' were amounts actually spent for 'charitable purposes' within the meaning of the Assam Agricultural Income-tax Act ? (2) Whether, on the facts and in the circumstances of the case, the Board was justified in holding that only 60 per cent. of the amounts actually spent by the assessee for 'charitable purposes' from the agricultural income was admissible as deduction under rule 2(2) of the Rules framed under the Assam Agricultural Income-tax Act ?" Before we answer these questions, it will be useful to refer briefly to the facts of the case. The assessee in each of these three references had made contributions to the Jalan Charity Trust in respect of various amounts and claimed exemption for the amounts so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssistant Commissioner, the assessees took the matter up in appeal to the Board of Revenue and the Board of Revenue while confirming the decision of the Assistant Commissioner held that only 60% of the income which is treated as agricultural income would be the basis for granting the exemption in regard to the contribution to the charitable trust. So holding, they left the finding of the Assistant Commissioner of Taxes undisturbed. Nevertheless, at the instance of the assessees, they made the references to us. In this connection it will be useful to refer to some of the relevant provisions of the Act. Section 24 of the Act provides for an appeal against the assessment under the Act to the Assistant Commissioner of Taxes. Section 26 is the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s there was no provision for doing so. When the legislature advisedly gave a right of appeal to the assessee and did not, pari passu, give a right of appeal to the department, it is obvious that the intention of the legislature was not to give the right of appeal to the department, and unless a right of appeal existed, the department would not have had the opportunity of questioning the correctness or otherwise of the decisions of the Assistant Commissioner, which are based on findings of facts. In other words, where the legislature advisedly excluded a particular remedy, because the assessee had filed an appeal, by giving an opportunity to the department to question the correctness or otherwise of the findings of fact reached by the Assist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law they could have interfered with the decision of the Assistant Commissioner. In support of this, the learned Advocate-General invited our attention to section 24 of the Act which enabled the Assistant Commissioner, on appeal by the assessee to him, to enhance the assessment notwithstanding that there was no appeal by the department in regard to the assessment. But sufficient safeguards have been provided in that section by way of giving notice and opportunity of being heard, etc., and we do not think that would help us to decide the question. We do not also agree with the learned Advocate-General that whether a particular trust is a charitable trust or not is a pure question of law. On the other hand, we are satisfied that a certain s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessees to claim exemption in regard to their contribution to the charitable trust only on a proportionate basis on which the liability to agricultural income-tax and income-tax is determined. It is common knowledge that where agricultural income is derived side by side with the industrial activity, like the production and manufacture of tea, 60 per cent. of the income, by virtue of the relevant rule under the Act, is treated as agricultural income and the rest as the income assessable under the Income-tax Act. But whether this proportion should also be applied in the similar way to the exemption claimed is the question that we have to consider. In this context it would be necessary to refer to the first proviso to section 8 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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