9911796707
TMI Blog2012 (4) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... usal of the accounts, it was noticed by the Director of Income Tax (Exemption), Ahmedabad that as on 31-03-2008 a sum of ₹ 51.59 lacs was advanced to 3 (three) trusts in respect of which the audit report of the Chartered Accountant remarked as under:- REMARKS The trust has given advances to following trusts and at the end of the year following amount is outstanding for which permission of Charity Commissioner is not obtained. Name of the Trust Balance outstanding as on 31-03-2008 1. K M Hospital Trust 4534865.00 2. Pathik Foundation 45000.00 3. P K Charitable Trust 580000.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount transaction and even during the year ended 31-3-2008 there were three payments of ₹ 20,000/- on 7-4- 2007, ₹ 10,000 on 7-7-2007 and ₹ 45,000/- on 30-10-2007. There were two recoveries of ₹ 25,000 and ₹ 20,000/- in October, 2007. Thus, advances made had no bearing to 15% income of earlier years. In fact, the income for year ended 31-3-2008 was only about ₹ 6300/-. The trust is not in existence for the purpose of advancing money to other charitable trust but to carry out its own objects of charity. In short, there are violations/deficiencies which are being perpetuated without any corrective action even after Auditor's remarks. Mere statement that they would retrieve the advance in due course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat provisions of law, this permission is required, both the parties failed to assist the Bench. Since non-approval of the Charity Commissioner has weighed heavily against the assessee-trust with Ld. DIT (Exemption) while rejecting the application for renewal, it is imperative to ascertain whether in fact such approval is of such a vital importance or not. Unless the relevant material is on record, it will not be proper on our part to adjudicate the matter. Therefore, the matter is restored back to the file of the Director of Income Tax (Exemption), Ahmedabad for fresh adjudication after bringing all the material relevant for granting of exemption including those mentioned above. 4 In the result, the appeal is allowed for statistical pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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