1979 (11) TMI 141

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..... ee is exempt from income-tax under s. 10(22) as well as under s. 13(2)of the IT Act, 1961. 2. The assessee is a public charitable trust registered as a society. For the asst. yr. 1976-77 and 1977-78 the assessee claimed exemption under s. 11. The ITO denied the exemption on the ground that the trust funds stood deposited with a firm, M/s. Hajee P. Syed Mohamed, in which the trustees were partners .....

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..... rstood by the Department to be applicable only to case of investment of the trust funds in the capital of a firm and not to a case where it is given as a loan. In view of this position, the assessee would be entitled to the exemption under s. 11 if the trust funds have been given on adequate security and for adequate interest. The AAC has himself the ITO to verify these facts and we, therefore dir .....

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