2003 (1) TMI 20

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.... in holding that the income of the assessee-trust was not entitled to exemption under section 11(1)(a) of the Income-tax Act?" The assessee is a trust. It was constituted by Shri Jeewanmal Tapadia, who was the manager of certain religious and charitable funds. A formal declaration for creating trust in respect of the religious and charitable funds was made by the aforesaid Shri Jeewanmal Tapadia on August 26, 1957. There were number of funds, which Shri Tapadia was managing. By the deed of indenture dated August 26, 1957, it was declared that the respective assets of the religious and charitable funds will be in favour of the trustees, who will hold the management and operate the respective assets of these funds for the purposes state....

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....bsp;   4,826 Charity fund                    7,526            6,663                 6,663 Smt. Moharidevi              15,526              -                      - Sanskrit Pathshala Jeetmal Charity Fund        1,244  ....

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....s only Rs. 4,826, whereas the expenses were at Rs. 7,998. These extra expenses are met from the accumulated fund of the earlier years. There was no income from M/s. Jagannath Tapadia Ayurvedic Aushdhalaya, but expenditure against that Aushdhalaya has been at Rs. 11,239 and Rs. 9,112, respectively. This expenditure was also incurred by withdrawing from the charity fund account. In Smt. Moharidevi Sanskrit Pathshala and M/s. Jeetmal Charity Fund, there were incomes of Rs. 15,526 and Rs. 1,244, respectively, but there was no application of that income. Thus against the total income of Rs. 29,124, the expenses incurred were of Rs. 35,012. Since the expenses incurred were in excess than the income, therefore, the trustee was not entitled to exem....