Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Wealth Tax Act 1957 Liability of Bangalore Club to pay wealth tax ss.3 21AA |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Income Tax Act, 1961 (43 of 1961) Wealth Tax Act, 1957 (27 of 1957) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Wealth Tax Act, 1957 – ss.3, 21AA – Liability of BangaloreClub to pay wealth tax – Assessing Officer held that Club was liableto be taxed under 1957 Act – Appeal dismissed by CIT (Appeals) –Appellate Tribunal set aside the orders of the Assessing Officer andCIT (Appeals) – High Court decided in favour of revenue – ReviewPetition dismissed – Held: s.21AA was introduced in order to preventtax evasion – It was enacted not to rope in association of personsper se as “one more taxable person” to whom the Act would apply– Bangalore Club is an association of persons and not the creation,by a person who is otherwise assessable, of one among a largenumber of associations of persons without defining the shares ofthe members so as to escape tax liability – In order to be anassociation of persons attracting s.21AA it is necessary that personsband together with some business or commercial object in view inorder to make income or profits – Bangalore Club is a social club –Persons who are banded together do not band together for anybusiness purpose or commercial purpose in order to make incomeor profits – s.21AA does not get attracted to the facts of the presentcase –Impugned judgment and review judgment set aside –IncomeTax Act, 1961 – s.2(31), 167A. |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2020 INSC 536 |
Petitioner | M/s Bangalore Club |
Respondent | The Commissioner Of Wealth Tax & Anr. |
SCR | [2020] 13 S.C.R. 488 |
Judgement Date | 2020-09-08 |
Case Number | 3964 |
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