9911796707
TMI Blog1982 (6) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... a filed the accounts of the Trust with regard to the loans given, but actually the trust had received these loans for the trustees from donation and was actually Hundi loans drawn on two firms in which the trustees were substantially interested; that it was seen from the details filed by the trustees that in M/s. Chandmal Harakchand and in M/s Nirmala Construction Corporation where the trustees and its relatives held 100% interest in these two firms; and the subsequent hundi loans of M/s. Champalal Kantilal Co. also attracted provisions of s. 13(2)(a) as the trustees had substantial interest; that since these loans were not with adequate security, and it could be treated that the persons mentioned in s. 13(3)had benefited by these hundi l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt of the cheques and hundi loans, it the previous year relevant for the assessment year under consideration. Therefore, from these facts, it is manifest that the provisions of ss. 11, 12, 13(1) (2) of the Act are not applicable and as such, the aforesaid amount of donation cannot be taxed as income of the trust. The reason is that if the amount of donations or contributions which are made voluntarily and received by the Trust, created wholly for charitable purposes, under the direction of the donors or contributors that such amount shall form part of the corpus of the trust, then, such donations and contributions are not at all the income of the trust. In this case, the amount of donation of Rs. 26,502 is made voluntarily by the donors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain concerns in which the Trustees has substantial interest. The details of the donations totalling to Rs. 26,501 are available o these two Rs. 5,001 and Rs. 5,000 were by cheque on the Bank of India dt. 24th October, 1973 and 25th October, 1973, but both collected on 25th October, 1973. There were two hundies dt. 1st April, 1973 and 26th October, 1973, but it is noted that they were realised on the very same days. There was factually, therefore, no question of any money belonging to the Trust being held by these concerns in which the Trustees were interested. The alleged donations were collected by the assessee during the previous year under appeal, thus taking the amounts out of the user by these concerns. While on the one hand the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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