1988 (4) TMI 99

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....ed Commissioner of Income-tax (Appeals) erred in computing the total income to a minus figure from total income of Rs. 1,53,515 ; 3. That, the order of the learned Commissioner of Income-tax (Appeals) may be reversed and that of the Income-tax Officer restored." 2. The facts are that the assessee, a charitable trust, was having income from : (i) Interest (Rs. 1,61,589), (ii) Dividend (Rs. 51,420), (iii) Profit on sale of Investment (Rs. 2,200). The total income of the assessee for the assessment year 1982-83 was Rs. 2,15,209. The assessee debited the donation account with Rs. 3,97,500 which included donation of 3,100 preference shares of Rs. 100 each purchased in the earlier years. However, the donation as required under section 11(1)....

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.... filed copies of balance-sheets of the trust for the years ending 9th November, 1977 and 27th October, 1981 and urged that if the interpretation of the ITO is taken, it will be a very hard case for the trust for the application of the income. The assessee-trust out of the accumulated profit purchased shares which had been donated during the year under appeal. Therefore, the CIT (A) was justified for taking the donation by way of investment as application of income. 6. The assesses was having a total income of Rs. 2,15,209. The assessee had given donation as required under section 11(1)(a) for Rs. 87,500. The assessee during the year under appeal had also given donation of 3,100 preference shares of Rs. 100 each. The details of the shares....

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....he donation given or the charge created on the total income to be disbursed later on or the amount spent for charitable object or donation given to be reimbursed out of the total income of the year. The assessee has donated 3,100 preference shares during the year under appeal. Once the shares have been donated, the investment account of the assessee has been liquidated to that extent and it would not affect the total income of the assessee. The total income has been affected by the assessee by giving a book entry. The assessee instead of crediting the investment account, while giving the donation, has credited the investment account and debited the donation account, and thus donation account is appearing in the profit and loss account. Ther....