In a recent order, the Supreme Court has directed to erase the personal remarks made against the authors-cum-Founder Chairman of the assessee-trust in the order passed by the Director of Income Tax (Exemptions) denying income tax exemption.
The assessee-appellant, Arsha Vijnana Trust was aggrieved by the adverse remarks regarding the contents of the books published by the appellant-trust. The High Court vide order dated 14.08.2007, has set aside the order and directed that personal remarks made against the authors-cum-Founder Chairman of the appellant-trust in the order passed by the Director of Income Tax (Exemptions), Hyderabad dated 31.01.2003.
After analysing the facts and documents, Justice Sanjiv Khanna and Justice J K Maheshwari observed that the judgment of the High Court, in fact, expunges, sets aside or strikes off the remarks made by the Director of Income Tax (Exemptions), Hyderabad on the contents of the books/publications and not just the remarks against the authors-cum- Founder Chairman of the appellant trust.
“To obviate any doubt, we clarify that the remarks made by the Director of Income Tax (Exemptions), Hyderabad starting from “Against this argument of assessee my observation is that the assessee is himself stating that it is not solely the statement of the object clause which is to be examined but also the nature of the activities undertaken……This is a political ambition disguised as Dharma and claimed as charity. I fail to convince myself to appreciate such acts to be acts of charity as per Income tax Act.” shall be treated as expunged and erased from record,” the Apex Court said.
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