Law: Income Tax Act, 1961

Section: 11

[Indian Income Tax Act, 1961)]......Charitable purposes--Charitable trust-Exemption ---Assessee---Trust giving money to college run by registered charitable society---Amount given by making credit entries in favour of society in its accounts---No challenge to genuineness of credits---Amounts representing credits was entitled to exemption--- Held, dismissing the appeal, that the question herein was essentially a question of fact. A college was run, not by the assessee-trust, but by another registered charitable society. The High Court had found that the conduct of the educational institution in drawing from the assessee-trust larger sums than what had been credited by the trust in. its favour in 1969-70 showed that it was fully aware of its credit with -the assessee- trust and the funds that had' been made available to it by the trust. It was no part of the Revenue's case at any point of time that the credit entries made in the assessee's books of account were not genuine or true or that they were mere make-believe or bogus. The Income-tax Officer .had not doubted the said entries and called upon the assessee to produce the accounts of the college. The High Court was right in holding that the assessee was entitled to exemption under section 11 of the Income Tax- Act, 1961. CIT v. Thanthi Trust (1982) 137 ITR 735 (Mad.) affirmed. ORDER The question arising herein is essentially a question of fact. After considering all the facts and circumstances of these cases, the High Court (see (1982) 137 ITR 735) has recorded the following finding (page 773): "Thus, on the material on record, we are not in a position to say that after making the credit entries, the assessee retained any control over the monies or any beneficial ownership therein. For the accounting year 1966-67 corresponding to the assessment year 1968-69, a sum of Rs.10,41,689.47 had been credited by the assessee in favour of the educational institution out of` which Rs.3,04,035 had been drawn by the said institution, and for the accounting year 1967-68 corresponding to the assessment year 1969-70, a sum of Rs.8,99,535 has been credited in favour of the educational institution and the educational…

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