TMI Blog1992 (2) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... r withdrew the investment allowance on the fishing boats. The fishing boat named Ragam was purchased and put to use in the previous year ending on 30-9-1977 relevant to the assessment year 1978-79. It was sold on 30-9-1981 that is within a period of eight years from the date of installation. As the Income-tax Officer was in seisin of the assessment in the year 1986 he withdrew the investment allowance originally granted on Ragam, as the same had been sold within a period of eight years. The CIT(Appeals) held that if an asset on which investment allowance was granted was subsequently sold within a period of eight years, the proper procedure would be to first allow the investment allowance in the year in which it is claimed and then withdraw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok place on 30-9-1981. Therefore, recourse to section 155 read with section 154 can be had by the Income-tax Officer only on or before 30-9-1986 to withdraw the investment allowance originally granted on Ragam in the assessment year 1978-79. The time limit having expired, the Income-tax Officer in law cannot withdraw the investment allowance granted on Ragam in the reassessment order dated 25-11-1986. It is argued before us by the revenue that the provisions of section 155 or 154 are inter-changeable with the provisions of section 147 and, therefore, in a 147 proceeding such mistakes can be corrected. We are unable to accept this argument. A special provision always excludes the general provision. Section 147 proceedings were taken only wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onditions envisaged in section 155(4A) of the Income-tax Act, 1961 do not apply in the case of Jyothi. Jyothi was lost in the high seas but not sold or otherwise transferred. Thus, we uphold the order of the CIT (Appeals). 5. In ITA No. 142(Coch.)/1987 the revenue is aggrieved against the cancellation of the order under section 154 passed by the Income-tax Officer consequent on the Tribunal's order in ITA No. 366(Coch.)/1983, dated 6-8-1985 directing the Income-tax Officer to disallow the contribution by the assessee to the trust in excess of the actual expenditure incurred. The assessee had paid a sum of Rs. 1,40,000 to Vijayalakshmi Employees Welfare Trust set up by the assessee on 27-9-1973 and the entire contribution was claimed as bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of advance. In this view of the matter, on an appraisal of the accounts he held that a sum of Rs. 1,29,422 was the expenditure incurred by the trust and in terms of Tribunal's direction the same was to be allowed. The revenue is aggrieved. 6. We have heard rival submissions. The main objects of the trust are as follows :-- (i) to provide relief of distress among the employees of the founder including assistance in the case of loss of salary on account of prolonged absence due to ill health. (ii) to provide for the advancement of education among the said employees and their children etc. (iii) to provide for the amelioration of the living conditions of the employees ; provide creches, render expert medical aid and give assistance fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loan originally taken to fulfil one of the objects of the trust will amount to an application of the income for charitable and religious purposes. As regards the loans advanced for higher studies, if the only object of the trust is to give interest bearing loans for higher studies, it will amount to carrying on of money-lending business, if however, the object of the trust is advancement of education and granting of scholarship loans is only one of the activities carried on for the fulfilment of the objectives of the trusts, granting of loans, even if interest bearing will amount to the application of income for charitable purposes. As and when the loan is returned to the trust, it will be treated as income of that year. " We take ai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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