1988 (2) TMI 27

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....clusion arrived at cannot be said to be correct and in accordance with law. While dealing with the provisions of section 5(1)(va)(ii) of the Gift-tax Act, 1958, both the IV Gift-tax Officer, Tirunelveli, as well as the Commissioner of Gift-tax, Madurai, have not taken into consideration the religious purpose for which the charity has been created. In the instant case, it is common ground that on the day of Ramzan, poor people have to be fed which is one of the objects. Unless the purpose is sectarian and communal, even though it may mention a particular auspicious day and though it was of a religious character, that does not take away the purpose for which it is created, viz., charitable purpose. The mere fact that the existence of the fest....

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.... business;) (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the institution or fund maintains regular accounts of its receipts and expenditure ; and (v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to th....

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....April 1, 1958, includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility. Referring to this definition-regarding " charitable purpose ", learned counsel for the petitioner submits that the contents of the trust deed ought to have been viewed and discussed by the authorities below which they have failed to do and as such, the order under writ petition is necessarily to be quashed. Learned counsel for the respondents has taken me through the common counter-affidavit filed on behalf of both the respondents and submitted that section 5(1A) of the Gift-tax Act, 1958, specifically provides that gifts made to charitable purposes, which are wholly or substantially of a religious nat....