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TMI Blog2015 (12) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... aiming the following substantial questions of law:- i. Whether in the facts and circumstances of the case the donation collected for specific project could have been added to the personal income of the appellant? ii. Whether in the facts and circumstances of the case in light of explanation to Section 2(24) (iia) of the Act, the Dera is not a deemed trust? iii. Whether in the facts and circumstances of the case the corpus donation received by the appellant is not a legal obligation giving a dual capacity to the appellant? iv. Whether in the facts and circumstances of the case disallowance of expenses to the extent of one sixth is sustainable in law? v. Whether in the facts and circumstances of the case the adding back of Rs. 13,35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order dated 17.11.2011 (Annexure A-1) made an addition of Rs. 1,21,67,653/- by treating the bank deposits as his income from profession and vocation while, inter alia, disallowing the expenses towards insurance and 1/5th expenses towards telephone, travelling and vehicle etc. amounting to Rs. 6,12,725/- besides, adding back Rs. 1,39,85,512/- claimed by the assessee towards donation of Chhattar of gold weighing 12.670 Kgs. to Sri Hazur Sahib, Abchalnagar, Nanded, Maharashtra and Rs. 13,35,658/- spent towards air conditioner, computer, vehicle, television, purchase of generator etc. Aggrieved with the same, the appellant filed an appeal before the Commissioner of Income Tax (Appeals), Amritsar [for brevity "the CIT(A)"], who dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chhabba. In support of his contentions, learned counsel has relied upon the judgments in Commissioner of Income Tax-II, Chandigarh v. The Punjab State E-Governance Society, Income Tax Appeal No. 75 of 2011, decided on 21.4.2011; Director of Income Tax v. Society for Development Alternatives, ITA Nos. 12 of 2012 and 18 of 2012, decided on 13.1.2012; Sukhdeo Charity Estate, Landu v. CIT, Rajasthan, Jaipur, (1984 ) 149 ITR 470 (Raj); Commissioner of Income Tax (Central), New Delhi v. Bijli Cotton Mills (P) Ltd., AIR 1979 SC 346; CIT, West Bengal v. Tollygunge Club Ltd., AIR 1979 SC 1343; CIT, Kanpur v. Sant Baba Mohan Singh, (1979) 118 ITR 1015 (All.); and CIT v. Baba Avtar Singh, (1972) 83 ITR 738 (Del.). 4. On the other hand, learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1860. There is also no trust deed of it, showing its activities as charitable or religious nature. It has also not obtained any certificate under Section 10 (23C) (iv) of the Act. Its account were never audited under any law. Even no approval under Section 80G(5) of the Act was ever obtained from any prescribed authority. It was evident before the Revenue Authorities that the entire affairs of the Dera, i.e donations/collections were solely managed and controlled by the appellant-assessee, according to his own whims and fancies in his individual capacity. 8. The Tribunal has rightly observed that the collection certificates were also stereo-typed without any PAN etc. Even no effort was made to produce any so called donation affirming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnance using information technology in the State of Punjab. It received many grants from the State Government and interest from the banks on the deposits. The Assessing Officer assessed those grants as its taxable income, being failed to spent 85% out of it, as required under Section 111 of the Act, besides interests thereon as taxable income, being separate from the grants-in-aid. The CIT (A) set aside the above additions holding that tied-up grants will not constitute income of the assessee. Further, the Tribunal also upheld the aforesaid decision of the CIT(A) by observing that the assessee had received certain grants from Government with a stipulation that such grants are to be utilized only for the stated purposes which are pre deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra), it was held that the voluntary contributions received from another trust were not assessable as income. It is intention of the donor and donee at the initial stage which is to be taken into consideration. In that case the assessee had taken donations of 1 lakh from another trust of Calcutta which remained unutilized. The Assessing Officer assessed the said amount as income under Section 12(2) of the Act. However, the High Court of Rajasthan held that since the contribution was for specific charitable purpose, therefore, even if the amount remained unutilized, it hardly makes any difference. In any circumstance, it cannot be termed as assessable income of the trust under the provisions of Section 12(2) of the Act 12. In Bijli Cotton ..... X X X X Extracts X X X X X X X X Extracts X X X X
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