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TMI Blog1997 (11) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. If the answer to the first question is in the negative whether on the facts and circumstances the Income-tax Officer could review the entire assessments and on the basis of only the material already on record, change his opinion and make additions to the total income ? 3. If the answer to the second question is in the affirmative, whether, on the facts and circumstances of the case, the crediting of the amounts to the Adithanar Educational Institution can be regarded as not sufficient compliance of the provisions of section 11 relating to the application of the income for charitable purposes and the assessee be denied the exemption thereunder as a consequence ?" The first question referred by the Tribunal is at the instance of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer. The Tribunal also found that the Commissioner of Income-tax (Appeals) also found that there were actual withdrawals of the amount by the charitable institution during the relevant years and, therefore, the crediting of the amount in the accounts can be taken as the application of the income. The Tribunal agreed with the views of the Commissioner (Appeals) and held that income was applied for charitable purposes and the additions cannot be sustained. The assessee has challenged the order of the Income-tax Tribunal in so far as it upheld the validity of reassessment. The Tribunal though upheld the action under section 147(a) of the Act ultimately held that there was no escapement of income. Mr. C. V. Rajan, learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 1966-67 the amount withdrawn was Rs. 17,307,082 which was the amount credited in favour of the educational institution. Hence, it cannot be said that it is a case of a mere credit entry in favour of the educational institution, but it is a case of withdrawal of the same by the educational institution. This court also in the earlier tax case found that the Revenue has not taken up the plea that the assessee had not been divested of the ownership in the money credited in favour of the educational institution to retain any beneficial interest therein. The only plea that was raised by the Income-tax Officer was that the mere credit entries in the assessee's books of account in favour of the educational institution would not be suf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee's books of account were not genuine or true or that they were mere make believe or bogus, and it was not brought to the notice that the Income-tax Officer doubted the said entries and called upon the assessee to produce the accounts of the college and the assessee failed to produce the same. In the instant case also it is not brought to our notice that the Income-tax Officer at any point of time doubted the genuineness of the credit entries and it was also not brought to the notice that the Income-tax Officer called upon the assessee to produce the account books of the educational institution and the assessee failed to produce the same. In view of the decision of this court in CIT v. Thanthi Trust [1982] 137 ITR 735, rendered i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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