TMI Blog2013 (9) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... he application for the reason that the Assessee had given advances to 3 trusts namely K.M.Hospital Trust, Pathik Foundation and P.K.Charitable Trust, the aggregate balance outstanding as on 31.3.2008 was ₹ 51,59,865/- and therefore he was of the view that the advancing of advances without the permission of the Charity Commissioner was not as per conditions (ii) and (v) of S. 80G(5) and thereby was against the object of the Trust. Aggrieved by the order of DIT(E), Assessee carried the matter before Tribunal. Tribunal vide order dated 20.4.2012 restored the matter back to the file of DIT(E) for fresh adjudication. Pursuant to the order of ITAT in ITA No. 664/Ahd/2010 order dated 20.04.2012, DIT(E)after considering the submissions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He further submitted that the Assessee has complied with the requirements of 80G and therefore the Assessee's application for renewal for exemption should be considered favourably. On the query from the Bench, the Ld. AR. submitted that the advance was granted prior to 1999, there is no agreement between the Assessee and the trust to whom the advance has been granted and further no interest has been charged by the assessee. The Ld. D.R. on the other hand supported the order of DIT(E). 5. We have heard the rival submissions and perused the material on record. It is an undisputed fact that Assessee is a trust which in the past was granted approval u/s 80G(5) which was valid from 1.4.2006 to 31.3.2009. The assessee trust made an applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of P.K.Charitable trust, the amount was advanced prior to 31st march 1999 but the exact date of advancing the amount is not available from the records placed before us. The amount outstanding as on 31st March 2000 was ₹ 50,000/- and the amount outstanding as on 31st March 2008 was ₹ 5,80,000/-. In case of amount advanced to K.M.Hospital Trust also, the amount was advanced prior to 31st March 1999 but the exact date is not available from the records before us. The amount outstanding as on 31st March 2000 was ₹ 27.32 lacs and the amount outstanding as on 31st march 2008 was ₹ 45.35 lacs. The details further reveals that the amount advanced has never been returned back fully but on the contrary the amount ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a permanent fund which has been given with a specific direction and therefore it cannot be used in any manner contrary to the directions of the donor. In the present case before us, as seen above, the entire corpus donation of the assessee trust has been used for advancing amounts to other trusts. Further, the amounts advanced have never been returned though a long period of more than 15 years have elapsed from the first date of it being granted and has also not been returned till date and therefore it can be said to have gone out of the trust. In these facts of the case, we hold that the amount advanced by the Assessee trust to the 3 other trusts as loan, was in fact a diversion of corpus fund of the Assessee to the other trusts and was no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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