High Court: Trust cannot use FDRs for personal benefit or as security

The Gujarat High Court ruled in favor of the assessee trust, holding that the use of FDRs for the benefit of an individual, lending FDRs, and unauthorized use of FDRs as security were not permissible actions. The court emphasized the importance of adhering to the trust's objectives and proper utilization of trust funds.

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The Gujarat High Court admitted the case and issued notices on substantial questions of law regarding the use of FDRs belonging to the assessee trust for the benefit of Jignashu Patwa, lending of FDRs during A.Y. 2004-05, and unauthorized use of FDRs as security for borrowing money by the son of a Trustee.

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