2013 (5) TMI 239 - HC - Income Tax

Receipt of money from the State Government to be distributed to distributing agencies - balance amount left was treated to be income in assessee s hand - Tribunal deleted the additions - Held that - On an admitted facts and circumstances of the case, that the assessee was only a trustee holding those monies for the benefit of others and, accordingly, no income accrued in its hands. Conclusion of the Tribunal is final - in favour of assessee.

Summary

The High Court of Uttarakhand ruled that money received by the assessee from the State Government for distribution was not considered as income, as the assessee was acting as a trustee for others. The Tribunal overturned the additions made by the Commissioner of Appeals, stating that no income accrued to the assessee. The appeal was dismissed based on the Tribunal's conclusion.