9911796707
TMI Blog2009 (6) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that the assessee was entitled to exemption under section 10(22) of the Act? 13. Whether the Tribunal was correct in holding that exemption under section 10(22) of the Act cannot be denied on the basis of the provisions of section 13(2B)(sic) of the Act ? 14. Whether the Tribunal was correct in recording a finding that the misuse of funds was very insignificant and there was exaggeration by the Assessing Officer in holding that the payments had been made to family members as there were only minor irregularities in accounts and that the remuneration and electricity bill being paid was justified by ignoring the cogent evidence examined by the Assessing Officer which clearly disclose that the chairman, his wife and sons were running ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to make profit to themselves and, therefore, the assessee was not entitled for the exemption claimed under section 10(22) of the Act. Therefore, he requested to answer the aforesaid questions in favour of the Revenue. 3. M. Javali, learned counsel appearing for the respondent, sought to justify the findings and the reasons recorded by the Tribunal in the impugned judgment contending that the electricity bills is in respect of residence of the chairman in which the house and office of the trust is being housed in the same apartment. Therefore, he submits that the payments made in favour of the son of the chairman and trust and as the hospital is being run by the trust, the Tribunal is right in recording a finding that misutilisation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies is the income of the trust and not the properties of the beneficiaries. 4. With regard to the said above contentions we have carefully examined the same and answer the aforesaid substantial questions of law in favour of appellant for the following reasons : (1) We have carefully examined the assessment order passed by the Assessing Officer. He has passed the assessment order on the basis of the survey conducted by him on March 9, 1998. The Assessing Officer at that time has noticed that certain important documents were impounded and statements on oath of Sri P. Sadasivan, chairman-cum-managing trustee was recorded. Thereafter, as per the procedure contemplated under section 143(1) and (2) of the Act notices were issued to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the trust. Therefore, the said findings of the Assessing Officer are in respect of misappropriation and misutilisation of the funds of the trust. The unexplained withdrawals are mentioned in the order of the Assessing Officer. On the basis of the undisputed facts and the material evidence on record, the documents were impounded from the office of the assessee. Therefore, the said findings are based on proper appreciation of material evidence on record. The said findings are affirmed (sic) by the Appellate Tribunal. The Tribunal without applying its mind to the facts and the documentary evidence on record, which are considered by the assessing authority, has recorded a finding of fact stating that the receipts in the name of the trust amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of the Revenue. 5. Further, the decision of the Supreme Court in the case of Aditanar Educational Institution v. Addl. CIT reported in [1997] 224 ITR 310 (SC) would not be of any assistance to the case of the assessee, in view of the finding of fact by the Assessing Officer confirmed by the first appellate authority on the basis of the documentary evidence on record, which were found and seized at the time of search conducted by the Assessing Officer and the material on record which is not disputed by the assessee. Therefore, the said decision and other decisions of the Rajasthan High Court and the Andhra Pradesh High Court in relation to the property in the name of the managing trustee and chairman Sri Sadashivan is the property ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
