1998 (10) TMI 32

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....arity, devoid of any religious intent and consequently free from the gift-tax liability ?". The assessment years are 1972-73 to 1978-79. The assessee is a limited company, the managing director of which happens to be a Muslim by religion. In the course of income-tax assessment proceedings, it is found that the assessee company had paid contribution by way of charitable donations year after year during the month of Ramzan. The amount paid by way of charity varies from Rs. 25,766 to a high of Rs. 53,552 during the years 1972-73 to 1978-79. The amount of the gift to any single individual was less than Rs. 100 at any time. The Gift-tax Officer treated these amounts as gifts made for religious purposes. The Commissioner, to whom the matter wa....

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.... Clause (vi) of that section reads thus : "(vi) for any charitable purpose not falling within clause (v)--- (a) made at any time before the 1st day of April, 1958, or (b) made at any time after that date subject, in respect of each such gift, to a maximum of rupees one hundred in value and, in respect of such gifts in any one previous year to the same donee, to a maximum of rupees five hundred in value in the aggregate." Section 5 of the Act provides for exemption in respect of the gifts which are covered by any one or the other of the sub-clauses of section 5(1) of the Act. Clause (v) to section 5(1) of the Act exempts gifts made to any institution or fund established or deemed to be established for I charitable purpose to whic....