TaxTMI 
TaxTMI 
1993 (7) TMI 50
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...., is correct in law and sustainable from the material on record ? (2) Whether, on the facts and in the circumstances of the case, the assessee is not liable to pay tax under any of the provisions of the Income-tax Act, 1961 ?" Believing that the Gujarat Pradesh Congress Samiti is an independent taxable entity, the Income-tax Officer served a notice under section 148 of the Act for the assessment years 1960-61, 1961-62 and 1962-63. The contention raised on behalf of the GPCS was that it was not a separate taxable entity having income of its own which can be brought to charge under the provisions of Act. Its case was that it was a unit of the Indian National Congress. The Income-tax Officer, however, did not accept this contention and treat....
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.... constitution of its own and that it has full control of finance and management within the area of its jurisdiction. He also submitted that no material was produced by the assessee to show that the property did not stand in its name but had stood in the name of the Indian National Congress. Thus, it was the assessee which was the owner of the income received by it and was thus a separate taxable entity. In order to appreciate these contentions raised on behalf of the Revenue, it is necessary to refer to the constitution of the Indian National Congress and the Gujarat Pradesh Congress Samiti. A perusal of both the constitutions clearly indicates that the Indian National Congress is an organisation or a political party and the assessee is on....
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....low the DCC shall be determined by the Pradesh Congress Committee concerned." Article X provides for the term of the Pradesh Congress Committee. A person who becomes a member of the Pradesh Committee has to pay an annual fee of Rs. 25 to the PCC of which Rs. 15 is to be remitted to the AICC as delegate fees and has to collect Rs. 100 for Congress funds biennially within three months of the election to the PCC and deposit it with the PCC and obtain a receipt therefor. Every PCC is subject to the general supervision and control of the AICC. Though the PCC has been given authority to frame its own constitution, it is further provided that it shall not be inconsistent with the constitution of the Indian National Congress. Moreover, it is furth....
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....a substantial part of the subscription amount, it has to spend it for the purpose or the object of the Indian National Congress and subject to its supervision and control. Thus, the functioning of the GPCS is only as one of the committees of the Indian National Congress and not as a separate independent entity. The GPCS obviously is not a political party having any independent object. It does not have any independent object as it is only a part of the Indian National Congress. A comparison of these two constitutions leaves no doubt regarding the assessee being one of the constituents and committees of the Indian National Congress. It does not have any existence apart from the existence of the Indian National Congress. No such existence is c....