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TMI Blog2010 (10) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/2010 - - - Dated:- 8-10-2010 - CORAM:HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN Mr. Abhishek Maratha, Advocate MANMOHAN, J. 1. The present appeal has been filed under Section 260A of Income Tax Act, 1961 (for brevity, "Act") challenging the order dated 12th March, 2010 passed by the Income Tax Appellate Tribunal (in short "Tribunal") in ITA No. 4886/Del/2009, for the Assessment Year 2006-2007. 2. The relevant facts of the present case are that the respondent-assessee is not only a society registered under the Societies Registration Act, 1860, but is also registered under Section 12A of the Act. The respondent-assessee had filed a return of Nil income for the Assessment Year 2006-2007. The said return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he irrevocable General Power of Attorney, Shri Manjeet Singh has clearly stated that he received un-refundable consideration of Rs.33 lacs in advance as under:- (i) Rs. 20 lacs vide cheque no.401640 dated 10.01.2006 drawn on Oriental Bank of Commerce, Branch Paschim Vihar, New Delhi. (ii) Rs. 9 lacs vide cheque no.416009 dated 16.05.2006 drawn on Oriental Bank of Commerce, Branch Paschim Vihar, New Delhi. (iii) Rs. 4 lacs vide cheque no.416037 dated 06.06.2006 drawn on Oriental Bank of Commerce, Branch Paschim Vihar, New Delhi. 14. He further stated that the aforesaid advance was received by him against the landed property measuring 700 sq. yds owned by him. He further stated in the deed of irrevocable General Power of Attorney that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g allowing of the possession of any immovable property to be taken or retaining in part performance of contract of the nature referred to in section 53A of the Transfer of Property Act, 1882, as contemplated u/s. 2(47) of the Act. Therefore, in the present case, the assessee has acquired capital asset in the form of a land, in respect of which the assessee has paid advance amount of Rs.20 lacs in the year under consideration, and balance consideration of Rs.13 lacs were paid in immediate next year and has obtained the possession of the property and also got irrevocable General power of Attorney executed in his favour by seller of the property. By making the payment in advance and taking the possession of the property, the assessee has acqu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the appeal papers, we are of the view that in the present case the advance payment of Rs. 20,00,000/- to Mr. Manjeeet Singh was towards application of funds for charitable purpose. In fact, in consideration of the said sum, not only Mr. Manjeet Singh had executed a registered irrevocable General Power of Attorney, but had also handed over possession/occupation of the land. In fact, all the powers to deal with the said property had been given to the respondent-assessee. 7. We are also in agreement with the view of the Tribunal that the judgment of the Madras High Court in V.G.P. Foundation (supra) is not applicable to the present case, as in the said case, the Madras High Court had found that the money instead of lying with the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 11(1) to the assessee for the assessment year 1970-71 in respect of the entire income consisting of Rs.8 lakhs plus Rs.1,64,210.03. On a reference to the High Court, the High Court has held that the sum of Rs.8 lakhs was an asset acquired in realization of an outstanding due and hence, the sum of Rs. 8 lakhs cannot be included in the income of the assessee for the purposes of section 11(1)….. xxx xxx xxx A mere look at sections 11(1) and 11(2) is sufficient to dispel this argument. Under Section 11(1), every charitable or religious trust, irrespective of whether it has filed a declaration under Section 11(2) or not, is entitled to deduction of certain income from its total income of the previous year. The income so exempt is th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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