Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

1961 (7) TMI 88

of the Constitution praying for a writ of certiorari directing the Income-tax Officer, Special Circle, Ambala, respondent, to forward the file of the case of Lala Gopi Mal Kuthiala Charitable Trust to this court and to quash the notice dated the 4th March, 1959, issued to the petitioner under section 22(2) of the Income-tax Act by the respondent. It is stated in the petition that as soon as the notice was issued a writ petition was filed in this court on 5th August, 1959, which came up for preliminary hearing before Dulat and R.P. Khosla JJ. who dismissed it on 6th August, 1959, on the ground that it was premature. The petitioner, however, states that the learned judges, while so dismissing the petition, expressed the view that the objectio .....

X X X X X X X

Full Text of the Document

X X X X X X X

deed does not fall within the category of a 'religious or charitable institution'; (c)a business which is itself held upon trust does not answer the description of 'a business carried on on behalf of a religious or charitable institution' to which alone the proviso to section 4(3)(i) applies; (d)the income of the petitioner's business is exempt under the substantive part of clause (i) in spite of non-fulfilment of the conditions stated in the proviso thereto ; and (e)no notice could be issued to the trust as such." Without giving any decision on the objections raised, the respondent, according to the petitioner, insisted upon the filing of the return by the petitioner. On 20th February, 1960, the authorised represe .....

X X X X X X X

Full Text of the Document

X X X X X X X

hearing Shri Hem Raj Mahajan raised a preliminary objection that there was a complete machinery provided by the Income-tax law which enables the assessees to claim redress of their grievances before the income-tax tribunals, and that the present writ petition, which is meant to short-circuit the prescribed procedure, is incompetent and must therefore be dismissed as such. He has drawn my attention, to begin with, to C. A. Abraham v. Income-tax Officer, Kottayam [1961] 41 ITR 425 ; [1961] 2 SCR 765, a decision by the Supreme Court given in November, 1960. In the head note it is stated that the Income-tax Act provides a complete machinery for assessment of tax and imposition of penalty and for obtaining relief in respect of any improper orde .....

X X X X X X X

Full Text of the Document

X X X X X X X

e writ side as also the extent of the relief which the circumstances of the case demand. The pith of the matter thus is that relief can always be granted and indeed should be granted by means of a prerogative writ in cases of threat by State to realise without authority of law tax from a citizen by using coercive machinery, but generally speaking there should be a clear-cut case of lack of jurisdiction or of a gross violation of mandatory provisions of law and the interests of justice should call for interference. Merely because it is alleged that ultimately assessment is likely to be contrary to law, this court would be disinclined on such allegation alone to by pass the usual machinery provided by the legislature and to proceed itself to .....

X X X X X X X

Full Text of the Document

X X X X X X X

e of the person receiving them: (i) Subject to the provisions of clause (c) of sub-section (1) of section 16, any income derived from property held under trust or other legal obligation wholly for religious or charitable purposes, in so far as such income is applied or accumulated for application to such religious or charitable purposes as relate to anything done within the taxable territories, and in the case of property so held in part only for such purposes, the income applied or finally set apart for application thereto: Provided that such income shall be included in the total income-... (b) in the case of income derived from business carried on on behalf of a religious or charitable institution, unless the income is applied wholly for .....

X X X X X X X

Full Text of the Document

X X X X X X X

purpose and to carry out the objects for which the trust was founded and as such the contention of the assesee does not appear to be well founded. In this paragraph a reference has been made to the observations of Lord Macnaghten in Mayer & c. of Manchester v. Me Adam [1896] AC 500; 3 Tax Cas. 491, quoted in Commissioner of Income-tax v. Radhaswami Satsang Sabha [1954] 25 ITR 472 . On behalf of the respondent, however, reference has been made to paragraph 11 of the written statement which states that it is not possible to give any decision on the objections raised by the petitioner unless and until the notice under section 22(2) is complied with and the case is examined fully with reference to the account books and the terms of the tru .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||