TMI Blog1987 (11) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ineers Rs. 2,00,000 3. Mrs. T.W. Fernando Rs. 20,000 4. M/s. Rajan Trading Co. Rs. 1,00,000 5. Mr. M. Imaculate Rs. 35,000 6. Mrs. Visalakshi Mayyappan Rs. 35,000 7. M/s Saghai Exporters Rs. 10,000 . Rs. 6,00,000 However only a sum of Rs. 2,18,000 had actually been received. The income and expenditure statement of the assessee showed an of expenditure of Rs. 2,61,107. The statement of affairs is tabulated as follows: Trust Fund: As per the last statement of affairs. Rs. 15,158 Add: Receipts during the year Rs. 6,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se sums will be given as donations, especially when the assessee had launched into the project of constructing a hospital. According to the assessee, therefore, there was no gift at all until the funds were actually received. In the alternative, it was argued that the retention of the monies promised by the donors until actual delivery of the cash to the assessee did not amount either to a loan or a diversion or investment because there was no voluntary Act of the assessee in that regard. 5. On the other hand, the contention of the Revenue was that taking all the amounts to the credit of the assessee in the books itself constituted a gift and the provisions of s.13 were attracted as held by the Punjab Haryana High Court in the case of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, for, in such an event both the donor and the donee recognised the entries in the account maintained by third party as constituting a valid transfer provided funds were actually available with the third party for the credit of the donor. That was the situation in the case of Sharda Trust vs. CIT decided by the Punjab Haryana High Court in (1980) 16 CTR (P H) 36: (1981) 127 ITR 236 (P H) and it has no application to the facts of the present case. Therefore, on the facts of this case and on the law applicable by reason of the decision of the Madras High Court there was no gift of any amount to the assessee other than the amounts actually received by the assessee. Consequently, there is no question of regarding the amounts promised but not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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