TaxTMI 
TaxTMI 
1994 (7) TMI 262
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....nd 214 of 1987 which relate to the assessment years 1981-82 and 1982-83. The Sales Tax Officer by his order dated August 16, 1983, assessed sales to sales tax the income derived by the appellant from the sales of the books excluding the income actually utilised for charitable purpose. On appeal, the Assistant Appellate Commissioner by his proceedings dated April 23, 1985, confirmed that order. However, the Tribunal by its order dated February 20, 1987, in further appeal brought before it, accepted the case of the appellant and reversed the decisions of the lower authorities and held that the entire income derived during the assessment years went towards utilisation of charitable purpose and, therefore, remitted the matter to the Sales Tax O....
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.... was also contended that if the income derived had been set apart or utilised for charitable purpose, i.e., stock-in-trade and proved to have been used for that purpose, the assessee would be entitled to the exemption under section 10 of the Act. Shri Nambiar, learned counsel for the Revenue, contended that the appellant admitted before the Assistant Appellate Commissioner that the sale proceeds were utilised for purchase of the books, i.e., stock-in-trade. The appellate authority, according to him, had found that for the relevant assessment years only a fraction of the income had been utilised for charitable purpose. It was, therefore, contended by him that the Sales Tax Officer and the Assistant Appellate Commissioner were right in conclu....
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....ised for charitable purposes." A reading of the notification clearly indicates the purpose for which the exemption had been granted by the Government, exercising its power under section 10 of the Act. It provides that the Government were of the view that in the public interest with a view to encourage the assessee to utilise the income derived out of the turnover on the sale of goods specified in the Schedule, for any charitable purpose, to the extent the assessee had proved to have utilised the sale proceeds for charitable purpose, would be entitled to the exemption from tax, being not exigible to tax. Counsel fairly admitted across the bar that the burden is always on the assessee, since it seeks exemption from the exigibility to tax o....
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.... shall be solely utilised for charitable purpose during the year or set apart to be utilised for charitable purposes. 2.. Where the profit set apart for utilisation for charitable purpose is utilised for any purpose, other than charitable the institution shall disentitle itself for the exemption under this notification during such year." Thereby the Government clarified that utilisation of the profit may be done during the relevant year or be set apart for charitable purpose, if not utilised. If it is utilised for any other purpose, other than charitable purpose, the institution should thereby disentitle itself for the exemption under the notification issued under section 10 of the Act. The practical difficulty could be easily visu....
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.... the books, i.e., stock-in-trade". It was also noted by the appellate authority that for the year 1981-82, out of a sum of Rs. 1,93,153.33 derived as profits only a sum of Rs. 22,400 was utilised for charitable purpose and for the assessment year 1982-83 out of profits of Rs. 1,22,124.03 only a sum of Rs. 15,570 was utilised for charitable purpose. In other words, it is contended that rest of the profits have been utilised only to purchase stock-in-trade and that, therefore, the appellant is not entitled to any exemption for the rest of the profits derived by him. May be that the assessee with the object to carry on charitable purpose in terms of the articles of association may use the profits derived by sale of the specified goods to augme....