The Supreme Court has recorded an interesting statement in its decision. This is a matter related to the former PM of Britain.
The Supreme Court has recorded an interesting incident in its decision. This is a matter related to the former PM of Britain. The court said that the British club had established the Bangalore club in our country in 1868. A British officer, Lieutenant WLS Churchill (Winston Churchill), was put on the defaulter’s list in 1899 by the club for not paying the arrears of 13 rupees, a debt the club always owed to that officer. These officers were Sir Winston Leonard Spencer Churchill who later became the Prime Minister of Britain.
Relief in case of payment of wealth tax
Referring to this, the Supreme Court has given relief to the Bangalore club in the matter of paying wealth tax. In the case in 2000, the Wealth Tax Officer of Bengaluru issued an order to collect tax on the properties of the club and its income. Against this order, the club reached the Karnataka High Court via the Income Tax Commissioner and the Income Tax Appellate Tribunal, but in 2007 the High Court upheld the order to collect tax from the club. The High Court said that the club’s liability should be shared equally among all its members.
No economic activity in the club
The club filed an appeal in the Supreme Court against this order of the High Court. The Bangalore club told the Supreme Court that there is no economic activity in the club nor any income is made through the activities there, so the club’s assets are brought under the income tax and the order to recover from each member Is not right. Accepting this argument, the Supreme Court has given relief to the Bangalore club.