TaxTMI 
TaxTMI 
2002 (7) TMI 34
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The assessment year involved in this reference is assessment year 1986-87. The assessee is a public charitable trust. The Income-tax Officer has found from a perusal of the balance-sheet that an amount of Rs. 1,85,064 received by the assessee during the accounting period relevant to the assessment year in question was taken to the balance-sheet directly. The said amount was received by the assessee towards construction of wadi for the caste people. The amount was thus received towards the object of the trust. The Income-tax Officer has taken the view that the amount in question represented income of the assessee and the same was added in the total income of the assessee. Being aggrieved by the said order of the Income-tax Officer, the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d reference, this court has taken the view that Deva Dravya fund is a fund maintained for a specific purpose and forms part of the corpus. This court has further observed that it is an established maxim of the Jain religion that Deva Dravya was religious property which cannot be diverted for purposes other than those which are considered sacred by the Jain scriptures. This court has, therefore, confirmed the view taken by the Tribunal and decided the reference in favour of the assessee and against the Revenue. In the present reference, all the three authorities below have found that the amount was received by the assessee-trust for the purpose of construction of wadi and it is the case of the assessee throughout that since the said amoun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ma Jain [1998] 231 ITR 787 wherein it is held that the objects of the trust clearly showed that the trust was meant for propagation of the Jain religion and rendering help to the followers of the Jain religion. Even the medical aid and similar facilities were to be rendered to persons devoted to the Jain religion and the medical aid could be given to non-Jains only if any member of the families managing the trust, showed sympathy and was interested in their treatment. The Tribunal was right in its conclusion that the dominant purpose of the trust was propagation of the Jain religion and to serve its followers and any part of agricultural income of the trust spent in the State of Kerala also could not be treated as an allowable item of expen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ome from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from section 11 and is subject to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. In the absence of any such information, it will not be possible for the assessing authority to give the benefit of such exclusion. Even assuming that there is no valid limitation prescribed under the Act and the Rules, it is reasonable to presume that the intimation required under section 11 has to be furnished before the assessing authority completes the concerned assessment because such requireme....