TMI Blog1979 (10) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... 000. 3. In the course of S.Y. 2029 the assessee received two donations one of them was a sum of Rs. 30,000 received from J. and another was sum of Rs. 1,00,000 received from JP. The donors made the donations specifically towards the corpus of the Trust Fund. The sum of Rs. 1,30,000 was credited to the trust fund account in the books of the assessee. 4. The final accounts of the assessee for S.Y. 2029 show that the trust fund account stood at the end of the year in the sum of Rs. 1,38,000 comprised of the above mentioned amounts. No amount has been debited to the said account in the course of the year. The accounts and the Balance-sheet also show that there was a deficit in the income and expenditure account of Rs. 26,326 which was tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Rs. 1,30,000. The AAC held that the assessment was not barred by the period of limitation, but at the same time he held that the income was reduced by Rs. 1,30,000. Incidentally he also upheld another addition of Rs. 501. 8. It is, in these circumstances, that both sides have come up before us in the two matters now under consideration. We have considered the relevant facts and circumstances, the orders of the authorities below and the submissions put forward on behalf of both the sides. 9. A preliminary point has been raised in the assessee's cross objection. The point is that the assessment is barred by the period of limitation, as the extended period for making an assessment prescribed under Expln. 1(iv) to s. 153(3) is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t did not have any resources than contributions of Rs. 1,30,000 for incurring the expenditure, the said contributions have not formed part of the corpus of the Trust. Now, in our opinion, when there are no entries in the accounts nor any other material to show that the expenditure was incurred by drawings upon the trust fund, it cannot be said that the contributions did not form part of the corpus of the Trust. It may be that the bank or cash balance on which the assessee drew for making the expenditure had been augmented by the contributions received by it, but this is not sufficient for holding that the contributions in question did not form part of the corpus of the trust. The provisions of s. 12 contain an exception in respect of "... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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