1980 (1) TMI 31

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....titled to exemption under section I of the Income-tax Act, 1961 ? " The facts found and mentioned in the statement of the case are that the assessee is a trust registered under the Societies Registration Act, 1860. The assessment in issue relates to the year which ended on March 31, 1971. The amount of Rs. 40,000, Rs. 10,000 by each of the four partners of the firm M/s. Cheru Lal Bal Chand, was donated to this trust; Rs. 20,000 in equal proportion were debited to the accounts of Shankar Lal and Lalit Mohan and credited to the account of the turst in the books of the firm on March 23, 1971. Similarly, a sum of Rs. 10,000 was debited to the account of Parshotam Lal on March 26, 1971, another sum of Rs. 10,000 to the account of Bal Chand on....

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....by the delivery of the property. In the present case only book entries were made prior to March 31, 1971, and actual money was delivered to the trust only in the month of April, 1971. By making book entries, it cannot be said that the money, subject-matter of the gift, was delivered to the trust and, therefore, the gift was not completed till the month of April, 1971. In support of his contention, the learned counsel relied on Sukhlal Sheo Narain v. CWT [1973] 89 ITR 157 (P & H). In that case, the assessee claimed to have made a gift of Rs. 28,000 each in favour of his three sons, two of whom were minors, by debiting his own account with Rs. 84,000 and crediting Rs. 28,000 each in the accounts of his three sons. It was held that no valid gi....