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TMI Blog1989 (11) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed the order of assessment bringing to tax the entire income disregarding the application for exemption. 3. In the further appeal before us it was pointed out on behalf of the assessee that the four items were recorded by the ITO as contravening the provisions of section 13(1)(d) actually were not investments at all. In the alternative it was contended that only the income arising from the offending investments should be denied the exemption under section 11. On the other hand, it was contended on behalf of the revenue that these items must be regarded as investments and, therefore, the assessee was not entitled to the exemption. 4. Section 13(1)(d) says that if any funds of the trust invested or deposited before 1-3-1983 otherwise t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distinguishes investments from loans and advances which are exhibited separately. The revenue referred to the definition of 'deposit' in the Explanation to sec. 40A(8). That is an inclusive definition enlarging the meaning of the word "deposit" to include money borrowed and can have no application to the context of section 13(1)(d). Consequently the decision in Kaloomal Shorimal Sachdev Rangwalla (P.) Ltd. v. First ITO [1985] 14 ITD 248 (Bom.) (SB) relied on by the revenue under that section which treats a current account of a Director with a company as a deposit within that provision can have no application in considering the scope of the word "deposit" in section 13(1)(d). Similarly, the decision in the case of Sharda Trust v. CIT [1981] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to get back any of this amount though it is exhibited in the balance sheet. Though the contribution to the chit could have been initially considered as an investment, after the company had gone into liquidation it becomes a debt owed to the company and ceases to be a deposit or investment. 7. The third item is a loan to Sri Srinivasa Trust amounting to Rs. 10,472. The assessee had originally advanced a sum of Rs. 1,71,934 for constructing a Kalyana Mandapam and the amount outstanding was Rs. 10,472. It is apparent that this amount was only a loan repayable by Srinivasa Trust and not an investment or deposit because it was given for the purpose of the Srinivasa Trust and not for the purpose of the assessee. 8. The last item is an am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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