1992 (8) TMI 118

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....ure are as under:---- Excess of income over expenditure as per Income & Expenditure statement Rs. 1,01,607 Less: Coconut sales Rs. 9,543 Palm leaves sales Rs. 73 Refund from Court Rs. 1,401 ------------------------ Rs. 11,017 ------------------------ Rs. 90,590 Add: Donations Rs. 2,836 Murder case exps. Rs. 7,000 Temple expenses Rs. 28,721 ------------------------- Rs. 38,557 ------------------------ Rs. 1,29,147 ------------------------ The Income-tax Officer treated the expenditure on donation and Temple expenses as application of income for charitable purposes. As regards the balance of Rs. 97,590, the assessee claimed that following loans were given :--- Loan for Marriage Rs. 6,96....

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....is a charitable trust of backward community known as "Dheevras" who were traditionally fishermen. The Sabha was properly constituted, in 1091 M.E. at Edacochin. There is a General body of Sabha, committee, President, Secretary, etc. The object of the Trust is the uplift of the members of the backward Dheevra community living in Edacochin in educational, social, communal, cultural, vocational, financial and spiritual games. The Trust applied for registration as required under section 12A of the Income-tax Act, 1961. The members of the trust are illiterate and the assessee admitted that the mistakes pointed out are bound to occur due to the illiteracy of the members of the trust. After considering all the contentions of the assessee, the CIT ....

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....e from Members Rs. 1,861 (e) Fish business loan to women Rs. 31,771 (f) Other loans to Members Rs. 50,167 (g) Murder case expenses Rs. 7,000 The Income-tax Officer was of the view that the accounts were not maintained properly by the assessee trust as was pointed out by Auditor. The auditor has pointed out certain discrepancies in dates in respect of receipts and payments and also commented that the title deeds in respect of lands have not been produced for verification. However, he had mentioned that Fixed assets have been valued and certified by the Managing Committee. There are audit comments about the imperfect title deeds also. The auditor has commented that the withdrawal of Rs. 25,000 from the State Bank of Travancore was....