9911796707
TMI Blog2008 (12) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... itable purpose. The claim was rejected by the Assessing Officer as well as the Commissioner (Appeals). The Tribunal allowed the claim based on the affidavit filed by the trustee that the funds advanced would be utilized for the purchase of cement later. Held that- there was no immediate requirement of cement as no concrete proposal was there for construction of the pilgrimage centre. Thus it was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant and counsel appearing for the assessee. 2. The assessee is a charitable institution which enjoys registration under section 12A of the Income-tax Act, 1961. During the assessment years 1993-94 and 1994-95, the assessee claims to have spent an amount of Rs.1,50,000 and Rs. 1 lakh respectively towards charitable purposes as contemplated under section 11(1)(a) of the Act. However, on enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have any evidence of actual utilisation of funds advanced to the cement trader for charitable purpose. Eligibility for exemption under section 11(1) is on the actual application of funds for charitable purposes. If any part of it is to be allowed as a deduction over the expenditure, it has to be carried forward strictly in accordance with the procedure contemplated under section 11(2) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der has no doubt confirmed the receipt of advance for supply of cement. However, there is nothing to indicate that any approval or permission is granted or is expected within a reasonable time for construction to justify the advance made to the trader. We are of the view that this advance is only siphoning off funds of the trust and there is no immediate requirement of cement as no concrete propos ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
