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TMI Blog1997 (8) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Rs. 1,50,000 received by the assessee is 'income' of the trust? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the amount of Rs. 1,50,000 spent towards 'Kisan-Rally' is not in nature of amount spent towards charitable purpose?" The brief facts giving rise to this reference are : that the assessee is a charitable trust and enjoys benefits under sections 11 to 13 of the Act, as a charitable institution. The assessee had filed a return for deficit of Rs. 3,774.50 for the assessment year 1982-83. The original assessment under section 143(3) of the Act was done on September 27, 1985, wherein the Assessing Officer had considered that the amount of Rs. 1,50,000 paid towards "Ki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal for answer of this court. We have considered the rival submissions of the parties and perused the record. The Tribunal, after considering the matter, has found that in fact this sum was given to the assessee-trust by K. N. Oil Industries with the specific directions that the money should be utilised for agricultural development purposes, such as, organisation of seminars to enlighten the agriculturists as regards modern techniques of agricultural operations or some sort of programme by which the agriculturists in general are benefited to overcome their existing problems. This letter was written on January 20, 1981, by K. N. Oil Industries, while sending the aforesaid money to the trust. Thereafter, on February 22, 1981, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nowhere stated as to what kind of charity they are organising. But the donations, which had been sent by K. N. Oil Industries or by Ganesh Twine Mills, were sent with specific directions to be spent on organising "Kisan-Rally" and not for the purpose of organising and utilising the corpus for the trust itself. Therefore, the Tribunal found that this has to be treated as income and accordingly it upheld the order of the Commissioner of Income-tax. After considering the matter, we are of the opinion that the view taken by the Tribunal appears to be fully justified in the present situation. We could have appreciated that the money would have been sent by these two units, i.e., K. N. Oil Industries and Ganesh Twine Mills, to the charitable i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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