1989 (5) TMI 120

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....iding passenger transport in the State of Andhra Pradesh, for the assessment years 1967-68, 1968-69 and 1969-70 was completed on 28-9-71, 30-11-71 and 31-1-72 determining the total income at Rs. 38,56,175, Rs. 99,67,650 and Rs. 83,67,343 respectively. Initially the assessee's claim seeking exemption u/s 11 of the Act was not accepted. However, the matter when taken to the High Court of Andhra Pradesh and the assessee succeeding on 23-11-1971 in a reference proceedings in Andhra Pradesh Road Transport Corpn. v. CIT [1975] 100 ITR 392 (AP) which decision was also affirmed by the Supreme Court in CIT v. Andhra Pradesh State Road Transport Corpn. [1986] 159 ITR 1 holding that the appellant corporation is entitled to the exemption claimed, the a....

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....ss : Int. on Securities (including Int. on Securities & C.G) Rs. 21,25,950 Excess Rs. 17,75,734 Less : 1. Payment of compensation made to Private operators which was added as capital but which is disputable and may be in order so far as commercial principles are concerned 62,586 2. Amounts written off not allowed in the asst. order. 35,560 3. Payment of fine disallowed in assessment order. 64,090 -------------------- 1,62,236 4. Contribution to Gratuity Fund : The assessee through its letter dt. 23-3-85 stated that contribution to other funds also should be allowed as it is statutory under Road Transport Corporation's Act. However, I find that they are in accordance with accountancy principles. Hence not allowe....

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.... decision of Calcutta High Court in CIT v. Birla Education Trust [1985] 21 Taxman 134. 9. Having considered the matter very carefully we are of the view that the case of the assessee does not call for the initiation of any action u/s. 11(4) of the Act. The Income-tax Officer has only tried to apply this provision to application/expenditure of income by the appellant trust, which does not conform to the provisions of law which aspect is amply taken care by sub-sec. (3) of sec. 11 of the Act which deals with any income not applied to Charitable or religious purpose or where such income ceases to be accumulated or set apart for application to a charitable or religious purpose. As held by the Calcutta High Court in Birla Education Trust's ca....

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....purposes. 16. Here, the ITO has to scrutinise the accounts and see if there is suppression of income or manipulation of accounts with a view to conceal income. He could see whether there are items which are deemed to be income under some provision of the Act and which have not been accounted for in the books of undertaking, or there may be some receipts which are really in the nature of income and which have not been reflected in the accounts. This interpretation of sub-section (4) of section 11 is in consonance with the legislative intent as disclosed by the Finance Minister, who spoke in the Parliament while this provision was under consideration. 17. It is now settled that the speech of the mover of the Bill is relevant. In K.P. Va....