TMI Blog2012 (12) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fund towards charitable activities, the assessee contended that an amount of Rs.3,95,00,680/- was transferred in July 2003 from assessee s SB A/c with State Bank of Hyderabad to some account in State Bank of Hyderabad, Punjagutta Branch which was in turn utilised towards purchase of Air conditioning system, networking, data backup services, printers, UPS, generator, note book computers, furniture etc., from M/s. Silicon Graphics Systems (India) Pvt. Ltd., Gurgaon, Haryana. Since this transaction was not reflected in the books of accounts of the assessee nor in the audited statement of accounts filed with the return. The AO asked the assessee to furnish the details of the transaction. After examining the details the AO found that the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oks of account. In support of its claim the assessee submitted a certificate issued by AGM, SBH, Punjagutta branch to the effect that the amount of Rs.3,95,00,680/- were transferred from assessee s savings bank a/c for issuing a letter of credit favouring M/s Silicon Graphics (India) Pvt. Ltd. The assessee submitted that AP Hazard Mitigation and Emergency Cyclone Recovery Project is a larger project with various participating agencies, one of them being the assessee trust. It was contended that Govt., of AP with a view to provide sustained effort in vulnerability reduction promoted the assessee trust. The assessee contended that since the effort involved a coordinated activity and infrastructure that would speak to each other s equipment, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in posting entries in the books of accounts the purchases could not be reflected in final accounts of the assessee. The learned AR contended that the computers were purchased through cheques issued by the assessee. The learned AR submitted that the funds have been utilised for achieving the object of the trust and there is no violation of the provisions of the Act. 9. We have heard rival submissions and perused the materials on record. At the outset, it will be worthwhile to look at the finding of the CIT (A) which is quoted below:- I have considered the submissions made by the appellant, gone through the order of the AO and the copies of hte orders of the CIT (A) and the ITAT. As the ITAT, Hyderabad, in the similar facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered 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. It was further observed by he Hon ble Supreme Court that the taxing authorities were entitled to look into the surrounding circumstances to find out the reality of the recitals made in the document. Now coming back to facts of the appeal before us, the assessee has failed to prove that application of fund by the trust was for charitable purpose. On the contrary the AO s finding is based on valid reasons. We therefore have no hesitation in setting aside the order of passed by the CIT (A) and restoring that of the AO. Hence, grounds raised by the Revenue are allowed. 10. In the result, the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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