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2005 (7) TMI 75 - HC - Income TaxAssessee, a public charitable trust - "Whether Tribunal is right in holding that the assessee is entitled to the benefit of section 11 in respect of the amount of Rs. 1,65,201 advanced as loan to certain section of the public, which according to the Income-tax Officer the assessee had written off since it found that the chances of recovery were remote?" - It is apparent that the trust had incurred expenditure towards advancement of loan to persons belonging to the weaker sections of society for the purpose of its charitable objects. The said amount was written off in the year under consideration as the chances of recovery were found to be remote and were transferred to the expenditure account and adjusted against the income of the year under consideration. Accordingly, the Tribunal has rightly held that the income was applied in the year under consideration, when the right of recovering loan was waived and the amount was adjusted against the income of that year - Tribunal was right in holding that the assessee is entitled to the benefit of section 11
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