Power to receive documentary evidence upheld; documents referred in complaint may be placed on record without amendment where omission was inadvertent...
Proof of foreign public documents requires originals or certified diplomatic/notarial copies; inspection must occur in-magna presence and cross-examin...
Assessment of whether provisions for gratuity and leave encashment qualify as application of income under the trust exemption. The Tribunal held such provisions are mandated by law, represent accrued and crystallized liabilities as on the balance sheet date, and are required for a true and fair view; it drew an analogy with depreciation as a book entry reflecting correct profits. The expression "applied" must be read commercially to include necessary statutory provisions incurred in furtherance of trust objects. Consequently the Assessing Officer was directed to allow these provisions as application of income and revenue grounds were dismissed.
Assessment of whether provisions for gratuity and leave encashment qualify as application of income under the trust exemption. The Tribunal held such provisions are mandated by law, represent accrued and crystallized liabilities as on the balance sheet date, and are required for a true and fair view; it drew an analogy with depreciation as a book entry reflecting correct profits. The expression "applied" must be read commercially to include necessary statutory provisions incurred in furtherance of trust objects. Consequently the Assessing Officer was directed to allow these provisions as application of income and revenue grounds were dismissed.
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