1997 PLP 1110 (PTD)
HYDERABAD RACE CLUB Versus COMMISSIONER OF WEALTH TAX
| Citation | 1997 PLP 1110 (PTD) |
| Forum / Court | 223 ITR 703 |
| Bench Members | B. P. Jeevan Reddy and K. T. Thomas, JJ |
| Parties | HYDERABAD RACE CLUB Versus COMMISSIONER OF WEALTH TAX |
| Primary Law | Wealth tax |
Q1: What are the key laws and sections cited in 1997 PLP 1110 (PTD)?
This judgment primarily cites: Wealth tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1997 PLP 1110 (PTD)?
The case was heard and decided by the 223 ITR 703 bench comprising: B. P. Jeevan Reddy and K. T. Thomas, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1997 PLP 1110 (PTD) (HYDERABAD RACE CLUB Versus COMMISSIONER OF WEALTH TAX). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
(Appeal from the judgment and order dated October 14, 1977 of the Andhra Pradesh High Court in Case referred No.3 of 1976).
Race club
Property of club not held under legal obligation for public charitable purpose
Not exempt
Indian Wealth Tax Act, 1957, S. 5(1)(i). The Hyderabad Race Club appealed to the Supreme Court against a decision of the Andhra Pradesh High Court holding that the net wealth of the club was not exempt from wealth tax under section 5(1)(i) of the Wealth Tax Act, 1957, and contended that the property held by it was under a legal obligation for a public purpose of a charitable nature: Held, affirming the decision of the High Court, that the club was, not entitled to exemption from wealth tax under section 5(1)(i) of the Act. CWT v. Hyderabad Club (1978) 115 ITR 453 affirmed. Hyderabad Race Club v. CIT (1985) 153 ITR 521 (AP) ref. JUDGMENT The question which was referred for the opinion of the High Court under section 27(1) of the Wealth Tax Act, 1957, is the following (see (1978) 115 ITR 453, 455): "Whether, in the facts and circumstances of the case, the net wealth of the Hyderabad Race Club is exempt from wealth-tax under section 5(1)(i) of the Wealth Tax Act, 1957?" Section 5(1)(i) at the relevant time, and in so far as it is relevant for the present purposes reads as follows: "5.
(1) Subject to the provisions of subsection (1A), the wealth tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee... (i) any property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India;..." The contention of the appellant that the property held by it is under a legal obligation for a public purpose of charitable nature has not been accepted by the High Court and we are not persuaded to take a different view. Indeed the question whether the Hyderabad Race Club was a charitable organisation was pronounced upon by a Full Bench of the Andhra Pradesh High Court in Hyderabad Race Club v. CIT (1985) 153 ITR
521. It was held that it cannot claim to be a charitable organisation. We are told that the special leave petition preferred against the Full Bench decision has also been dismissed by this Court (see (1995) 212 ITR (St.) 375). In this view of the matter, we do not find any substance in this appeal. The appeal is dismissed accordingly. No costs. M.B.A./1313/FC???????????????????????????????????????????????????????? ?????????????????????? Appeal dismissed.
Judgment & Decree
The question which was referred for the opinion of the High Court under section 27(1) of the Wealth Tax Act, 1957, is the following (see (1978) 115 ITR 453, 455): "Whether, in the facts and circumstances of the case, the net wealth of the Hyderabad Race Club is exempt from wealth-tax under section 5(1)(i) of the Wealth Tax Act, 1957?" Section 5(1)(i) at the relevant time, and in so far as it is relevant for the present purposes reads as follows: "5.
(1) Subject to the provisions of subsection (1A), the wealth tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee... (i) any property held by him under trust or other legal obligation for any public purpose of a charitable or religious nature in India;..." The contention of the appellant that the property held by it is under a legal obligation for a public purpose of charitable nature has not been accepted by the High Court and we are not persuaded to take a different view. Indeed the question whether the Hyderabad Race Club was a charitable organisation was pronounced upon by a Full Bench of the Andhra Pradesh High Court in Hyderabad Race Club v. CIT (1985) 153 ITR
521. It was held that it cannot claim to be a charitable organisation. We are told that the special leave petition preferred against the Full Bench decision has also been dismissed by this Court (see (1995) 212 ITR (St.) 375). In this view of the matter, we do not find any substance in this appeal. The appeal is dismissed accordingly. No costs. M.B.A./1313/FC???????????????????????????????????????????????????????? ?????????????????????? Appeal dismissed.