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TMI Blog2015 (6) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961. Respectfully following the above we set aside the matter to the file of the Assessing Officer to compute the income of the assessee for the assessment years 2002-03 and 2003-04 afresh in view of the above direction of the ITAT after affording proper opportunity of being heard to the assessee. - Decided in favour of assesse for statistical purposes. - ITA No.2550/Del/2008 ITA No. 1920/Del/2011 - - - Dated:- 19-3-2015 - Shri I.C. Sudhir And Shri B.C. Meena JJ. For the Appellant : Shri P. Damkaunajma, Sr. DR For the Respondent : S/Shri K. Sampath R. Raja Kumar, ARs ORDER Per I.C. Sudhir: JUDICIAL MEMBER The assessee has questioned First Appellate Order on the following grounds: Ground in ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the amount of the grant received from Ford Foundation as income of the assessee and computing the income erroneously. He pointed out that in the assessment year 2001-02, the ITAT in the appeal preferred by the assessee numbered as ITA No. 4542/Del/2004 vide order dated 221.10.2013 has set aside the matter to the file of the Assessing Officer to compute the income of the assessee in terms of the decisions of in the cases of Nirmal Education Society, 71 ITD 152 (Hyd.), Society for Integrated Development in urban and rural areas - 90 ITD 493. The ITAT has directed the Assessing Officer to recomputed the income of the assessee de novo in accordance with law after giving opportunity to the assessee. The ITAT had also held that when future inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and Rural Areas (Sidur) vs. DCIT, 90 ITD 493 held as follows. 24. Coming to the second limb of the argument of the learned counsel for the assessee that the entire receipts cannot be taxed, we find that the issue is covered by the judgment of this Bench in Nirmal Agricultural Society s case (supra). In that case, it has been held (as per head note) as under:- The assessee had not been granted registration u/s 12A, as the Commissioner thought it fit to refuse to condone the long delay caused by the assessee in applying for the registration. Therefore, the Assessing Officer had no other option but to complete the assessments in the status of AOP also closing his eyes towards section 11 and section 13. To that extent, the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee society, such grants did not form corpus of the assessee or its income. Those grants were not donations to the assessee so as to bring them under the purview of section 12. Voluntary contributions covered by section 12 are those contributions freely available to the assessee without any stipulation, which the assessee can utilize towards its objectives according to its own discretion and judgement. Tied-up grants for a specified purpose would only mean that the assessee which was a voluntary organization, had agreed to act as a trustee of a special fund granted by donor with the result that it need not be pooled or integrated with the assessee s normal income or corpus. In the instant case, the assessee was acting as an independent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -up grants) will be deducted as revenue expenses. 25. Honourable Rajasthan High Court in the case of Sukhdeo Charity Estate (supra), held as follows (as per head note) :- It was for the specific purpose of implementation of the water supply scheme that the request for contribution had been made by the assessee trust and it was in response to that request that the amount had been given by the Calcutta trust. It was clear that the intention of the donor and the donee was to treat the money as capital to be spent for the water supply scheme. The fact that the amount had not been paid over to the State Government and was kept unutilised in the account of the assessee-trust was not relevant. The amount could not be said to be income an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d (d) of the Income-tax Act, 1961, the other grounds of the assessee need not be gone into, as it would be of academic interest only. The Revenue has not brought to our notice any judgment from any High Court which has dealt at length on this issue and which is in its favour. It is also not clear whether the Revenue has accepted or gone on appeal against the judgment of this Bench in the case of Nirmal Agricultural Society(supra). (Emphasis ours). 8. The Assessing Officer is required to follow the well settled Principles of computation of income mentioned in the above decision. As these arguments of the assessee and the case laws cited on the issue of computation of total income had not been considered in the order of the Tribunal d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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