2016 (7) TMI 408

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..... then Assessing Officer? 3. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in authenticating the Development Fund as Income as per Income & Expenditure Accounts, as the same has not been reflected in Income & Expenditure Account instead shown directly in the Balance sheet? - Income Tax Appeal No. 71 of 2016 - - - Dated:- 5-7-2016 - Hon'ble Amreshwar Pratap Sahi And Hon'ble Dr. Vijay Laxmi, JJ. For the Appellant : Alok Mathur ORDER Heard Sri Alok Mathur learned counsel for the appellant. He has relied on Apex Court judgment in the case of Malabar Industrial Co. Ltd. vs. Commissioner of Income Tax reported in 2000 Vol. 2 SCC page 718. Para nos. 6 to 10 of the said jud .....

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..... MANU/WB/0263/1956 : [1957] 31 ITR 872 (Cal), the High Court of Karnataka in CIT v. T. Narayana Pai MANU/KA/0017/1974 : [1975] 98 ITR 422 (KAR), the High Court of Bombay in CIT v. Gabriel India Ltd. MANU/MH/0220/1993 :[1993] 203 ITR 108 (Bom) and the High Court of Gujarat in CIT v. Smt. Minalben S. Parikh MANU/GJ/0177/1994 :[1995] 215 ITR 81 (Guj) treated loss of tax as prejudicial to the interests of the revenue. 9. Mr. Abraham relied on the judgment of the Division Bench of the High Court of Madras in Venkatakrishna Rice Company v. CIT MANU/TN/0138/1981 :[1987] 163 ITR 129 (Mad) interpreting prejudicial to the interests of the revenue . The High Court held, In this context, it must be regarded as involving a conception of acts or o .....

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..... income in his hands on his so offering, the order passed by the assessing officer accepting the same as such will be erroneous and prejudicial to the interests of the revenue. Rampyari devi Saraogi v. CIT MANU/SC/0177/1967 :[1968] 67 ITR 84 (SC) and in Smt. Tara Devi Agarwal v. CIT MANU/SC/0339/1972 : [1973] 88 itr 323 (SC). Applying the aforesaid principles learned counsel for the appellant submits that in the instant case if the assessee on realizing money from the students in the name of development fund but had utilized it for its income and expenditure, and not for any development, then in that event the same would not be liable for any exemption under Section 11 and this aspect of the matter has not been considered by the Tribunal .....

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