Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 637 - AT - Income TaxViolation of sec. 13(1)(c) - non application of Funds of Trust for Charitable purposes - diversion of funds - CIT(A) allowed the claim - Held that:- The claim of purchase of computers and equipments by the assessee could not have been accepted on its face value when it was not reflected in the books of accounts. Even the balance sheet forming part of the final accounts audited by a Chartered Accountant does not show the computers and other equipments as asset. A lapse of such magnitude cannot be wished away light heartedly as an oversight of the accountant. More so, when the assessee claims itself to be a trust promoted by the Government. The invoices raised by M/s Silicon Graphics (India) Pvt. Ltd., towards sale of computers and equipments were also in the name of Govt., of AP, Disaster Management Unit, Planning Deptt., and not in the name of assessee. These facts have not at all been examined by the CIT (A) while deciding the appeal. As decided in CIT vs. Durga Prasad More (1971 (8) TMI 17 - SUPREME COURT) that though apparent must be considered to be real until it is proved to be otherwise, a party who relies on a recital in a deed has to establish the trust of those recitals. The taxing authorities were entitled to look into the surrounding circumstances to find out the reality of the recitals made in the document. As the assessee has failed to prove that application of fund by the trust was for charitable purpose appeal of revenue allowed.
|