2005 (4) TMI 40

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....halamoorthy J.- On April 4, 1984, the respondent had made a donation of Rs. 4,00,000 to the All India Anna Dravida Munnetra Kazhagam Peraringar Anna Trust "AIADMK PAT" for short) towards the corpus of the trust. The Assessing Officer, finding from the accounts of the trust, that the trust had utilised the amount for setting off the earlier year's losses and for repayment of loans taken from AIADMK....

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....ation was made there was no approval of the institution by the Commissioner of Income-tax under section 80G of the Act. A further contention is made to the effect that the trust was running a business, viz., printing press. Hence its income was not liable to exemption in terms of clause (bb) of section 13(1) of the Income-tax Act. According to the appellant, the levy of gift-tax on the donation ma....

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....ee being a political party, founded on the principles for which the late Thiru Annadurai stood and as the donee-trust also was to propagate his ideals, the donation made by the appellant should be viewed as an expenditure in furtherance of the objects for which the party was founded. It may be straightaway pointed out, that the plea that the amount given to the trust should be treated as expend....

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....n of section 80G(5) is that the donation to an institution or fund would be entitled to deduction if the institution is established in India for a charitable purpose and it fulfils certain conditions. The examination of the trust deed as well as the conditions would show that none of the provisions of the trust deed can be said to be in contravention of the conditions mentioned. Only the Finance (....