TaxTMI 
TaxTMI 
1981 (9) TMI 147
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....ndia, again enjoying exemption under s. 80G of the IT Act, 1961. (d) On 25th March, 1975, the Reserve Bank of India gave its permission to transfer the shares of various companies held by Lady MacRobert (deceased) and Sir Alexander MacRobert Memorial Trust to the charitable institutions mentioned in the assessee's letter dt. 5th March, 1975 to the Reserve Bank of India. (e) Pursuant to the aforesaid permission obtained from the Reserve Bank of India, the assessee trust donated the shares held by Lady R.W. MacRobert (deceased) and Sir Alexander MacRobert Memorial Trust to the following four charitable Institutions in India: Name of Donee Particulars of shares No. Of shares Delivered on Acknowledged on 1.Georgina MacRobert Memorial Hospital, Kanpur British India Corporation Ltd. Kanpur (BIC) Pref. shares 1,500 26th March, 1975 26th March, 1975 Elgin Mills Co. Ltd Vendor shares 2,550 26th March, 1975 26th March, 1975 Ordinary shares 350 26th March, 1975 26th March, 1973 2. Dr. Grahami's Home, Kalimpong BIC pref 1,500 31st March, 1975 10th April, 1975 Elgin Ordinary 2,620 31st March, 1975 10th April, 1975 3. Mary Culvert Hold-worth Memorial Hospital, My....
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....idered the grounds taken by the WTO on one hand and the submissions made by the counsel for the appellant on the other. Since he share certificates were posted too the donees on their earlier request, on or before the valuation date and these shares were excluded from the balance sheet drawn in the books of the appellant maintained in the regular course of business, no further action is required to complete the transfer vis-a-vis transfer and transfers. In view of the case laws cited by the appellant's counsel there is no force in WTO's reliance on the provisions of Companies Act for determining the date of completion of transfer. As such, the appellant was correct in excluding these shares from the net wealth completed on the relevant valuation date. The appeal is, therefore, allowed. The appellant will get the relief of Rs. 3,35,611 in the computation of net wealth." 5. Being aggrieved by the order of the AAC, the Revenue has come up in appeal before us. The ld. Rep for the Department strongly relied on the order of the WTO and urged that the order of the AAC be set aside and that of the WTO be restored. According to the ld. Rep. For the Department, the provisions of ss. 122 ....
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.... 1975 i.e., much before the relevant valuation date, the value of the shares donated to it cannot be included in the net wealth of the assessee. As regards the donations made to the three charitable institutions, the ld. counsel for the assessee submitted that, since the shares in question were sent to them at their request prior to the relevant valuation date, the gift was completed on or before the relevant valuation date and, therefore, the value of the shares so donated to them can also not be included in the net wealth of the assessee. For this proposition, he relied on the decision of the Hon'ble Supreme Court in the case of Ogale Glass Works (1954) 25 ITR 529 (SC). Relying on the decision in the case of Suraj Bai, the ld. counsel for the assessee submitted that in order to make the gift complete, it was not necessary that the transfer of shares should have been affected in the companies' share register on or before the due date. In this view of the matter, he urged that we should uphold the order of the AAC under appeal. 7. We have carefully considered the rival submissions of the parties as well as the material already brought on record. In our view, since the shares were....
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....of bill in the prescribed form in accordance with instructions given in the acceptance of tender by cheque on a Government Treasury in India or on a branch of the Reserve Bank of India or the Imperial bank of India transacting Government business." The assessee submitted the bill in the prescribed form and wrote on it as follows: "Kindly remit the amount by a cheque in our favour on any bank in Bombay." The assessee received cheques drawn on the Bombay-branch of the Reserve Bank of India along with a memo containing an acknowledgement form which was thus expressed: "The undersigned has the honour to acknowledge cheque No... dated... for Rs.... in payment of the bills noted in the first column in the reverse". The assessee endorsed the cheques in favour of the Aundh Bank, Ogalowadi branch, which in its turn endorsed them in favour of a Bombay Bank. The Bombay Bank cleared the cheques through the Clearing House in Bombay. The Aundh Bank credited the assessee's account on the very day the cheques were received from the assessee with the amount of the cheques less the collection charges, and the assessee credited the account of the Supply Department and made corresponding debits to....