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Judgment
The Income Tax Appellate Tribunal, Allahabad, has referred the following question of law u/s 26(1) of the Gift Tax Act, 1958 (hereinafter referred to as ''the Act) for opinion to this court:
"Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the gift made by the assessee to M/s. J.K. Charitable Trust is exempt u/s 5(1)(v) of the Gift Tax Act, 1958 even though the Trust has not been recognised as a Trust satisfying the conditions prescribed u/s 80G(5) of the Income Tax Act, 1961."
Briefly stated the facts giving rise to the present reference are as follows:
The reference relates to the assessment year 1969-70. During the assessment year in question the respondent-assessee had made a gift to M/s. J.K. Charitable Trust. They claimed exemption u/s 5(1)(v) of the Act. The Gift Tax Officer had denied the exemption on the ground that the Trust has not been recognized as a Trust satisfying the conditions prescribed u/s 80G(5) of the Income Tax Act, 1961. Feeling aggrieved the respondents preferred separate appeals before the CIT (A) who by allowing the appeals has held that the gift in question is entitled for exemption as the Trust is covered under the word "institution". The revenue''s appeal before the Tribunal has failed.
We have heard Shri A.N. Mahajan, learned standing counsel for the revenue. Shri Shambhu Chopra appearing for the respondents states that he has no instructions in the matter. It may be mentioned here that from the order of the Tribunal, we find that the J.K. Charitable Trust has been granted exemption u/s 11 of the Income Tax Act, 1961 up till the assessment year 1970-71. The gift in question had been made during the relevant assessment year 1969-70 and, therefore, the Trust having been recognized and granted the exemption under Income Tax Act, the gift made to it was exempt u/s 5(1)(v) of the Act. In this view of the matter, the Trust satisfied the condition laid down u/s 80G(5) of the Act.
We accordingly answer the question of law referred to us in affirmative, i.e., in favour of assessee and against the revenue. However, there shall be no order as to costs.