2020 (8) TMI 912

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....l Trust, the assessee, filed its return of income for the assessment year 2009-10 claiming exemption u/s. 11. During the assessment proceedings, the A O noticed that several withdrawals were made from bank and cash withdrawals by the trustee, Shri. Vinoth Diraviraj, who is also a correspondent of the school. The A O required the assessee to produce vouchers and bills. Since, the assessee could not produce them, the income from the trust was drawn by the trustee and evidences for the applications were not produced, the AO treated them as violation u/s. 13(1)(c) and hence denied the exemption. Though, the assessee incurred capital expenditure, in view of denial of exemption u/s. 11, the A O treated it as non-application of income, however, al....

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....nstitution. It maintained regular and detailed books of account supported by vouchers. During the assessment proceedings as well as the remand proceedings, it was submitted that Shri. Vinoth Diraviraj, who is incharge of the day to day management of the school, was authorised to sign cheques, withdraw money from the bank, authorised to make payments for the purposes of running the school. All the fees collected from the students are deposited into the bank and for making any expenses, the school has to withdraw the money from the bank and spend for the expenses. The trustee, being in-charge of the day to day functioning of the school, withdrawn the cash from the bank. The said cash is accounted in the cash book as receipt and the payments i....