1981 (11) TMI 55

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... M. R. SHARMA J.-The Income-tax Appellate Tribunal, Chandigarh Bench, has referred the following question of law to us for our opinion " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that Rs. 4,625 constituted, the assessee's income liable to tax ? " The assessee is a registered firm deriving income from the purchase and sale of utensi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....they were received from its constituents for being disbursed for charitable purposes. Because of the disbursement, specially mentioned above, the ITO disallowed the claim of the assessee. The assessee went up in appeal which was dismissed by the AAC on the ground that the amounts collected by the assessee had not been spent purely for the purposes of charity. The assessee went up in second a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....not involve any process or carrying on of any activity for profit. It is a matter of common knowledge that only low-paid employees working in banks are allowed to form a recognised trade union. When donation is made to such a union, it merely allows the low-paid employees to put forth their demands for the betterment of their service conditions on collective basis. The donation made to a union rem....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ot impress the receipts with the character of being trading receipts. Further, it is not possible to accept the submission that the customers being illiterate did not appreciate that they were paying the amount with a view to create a trust, especially when it has been found that such payments were made pursuant to a custom which obtained in the commercial and trading community; indeed, being a cu....