DIRECTOR OF INCOME TAX Vs. KHETRI TRUST

JUDGEMENT

(1.) BY order dated May 17, 2005, the following substantial question of law was framed in this appeal by the Revenue which pertains to the assessment year 1991 -92:

(2.) THE Assessing Officer observed in his order dated March 21, 1994, that the trust had accumulation of Rs. 15,74,637 but he has not observed that there was violation of sections 11(5) and 13(1)(d) on account of wrong or prohibited investment of the aforesaid amount. However, the Assessing Officer has made reference to shares in foreign companies of Rs. 9,77,025 and advance to Business India of Rs. 1,11,000 and observed that these two investments were made contrary to the mandate of section 11(5) of the Act. The Assessing Officer also observed that the advance given to Business India should be treated as investment as TDS Certificates had been issued on the interest paid on Rs. 1,11,000 and annexed with the return. For the aforesaid reason, the Assessing Officer computed the total income as Rs. 17,55,360, denying benefit of section 11 of the Act.

(3.) HAVING examined the assessment order and the appellate orders, we have to observe that the assessment order is cryptic and full details and facts have not been discussed. However, the same find elucidation in the order passed by the Commissioner of Income -tax (Appeals) dated October 6, 1994.