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TMI Blog2012 (1) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. There is no direction by the CIT(A) to the AO to take any action on the basis of said observations. In fact, we find that the said observations are in favour of the assessee herein. In view of the same, we do not see any substance in the Cross-objection and they are also dismissed. - ITA No.1382 and 1535 /Bang/2010 with CO No.10 and 11/Bang/2011 - - - Dated:- 31-1-2012 - SHRI N.K SAINI, ACCOUNTANT MEMBER AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER. Revenue by : Smt. Susan Thomas Jose Assessee by : Shri Ashok A Kulkarni ORDER PER P MADHAVI DEVI, JUDICIAL MEMBER : These appeals are filed by the Revenue and the Crossobjections are filed by the assessee. These appeals are directed against the order of the Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income in form 3A of the Income-tax Rules applicable for institutions seeking exemption u/s 11 of the Act. The status of the assessee in the said return was shown as AOP. The return of income filed for the assessment year 2003-04 was not rejected by the Revenue authorities and, therefore, the assessee presumed that the same has been accepted. For the asst. year 2004- 05, the assessee filed its return of income disclosing the total taxable income of ₹ 46,296/- and advance tax on the same was also paid. In the return of income, the status was indicated as AOP. During the assessment proceedings u/s 143(3) of the Income-tax Act, the AO sought for list of donors with respect to certain donations. The assessee filed particulars regarding r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned DR while supporting the order of the AO, submitted that the definition of income given at sub sec. 24(iva) of sec.2 includes the value of any benefit or perquisite whether convertible into money or not, obtained by any representative assessee mentioned in clause (iii) or clause (iv) of sub sec. (1) of sec. 160 or by any person on whose behalf or for whose benefit any income is receivable by the representative assessee. He also drew our attention to the definition of the representative assessee provided u/s 160 of the Income-tax Act. According to the clause (iv) of sub sec. (1) of sec. 160, Representative Assessee means in respect of income which a trustee appointed under a trust declared by a duly executed instrument in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere in cash or by cheques. He also drew our attention to Annexure C at pages 32 to 35 of the paper book which is a letter of ITO to the CIT(A) giving a remand report on the details filed by the assessee. Thus, according to the learned counsel for the assessee, the order of the CIT(A) is to be upheld. 10. He also placed reliance upon the decision of the Hon ble Karnataka High Court in the case of CIT Vs. Mysore Commerical Union Ltd. reported 126 ITR 340 which has been upheld by the Hon ble Supreme Court in the case of Maftlal Gagha Bhai reported in 219 ITR 644. He submitted that this issue is also been clarified by the CBDT Board Circular, which is available at 98 ITR statute 97. 11. Having heard both the parties and having considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of perquisite whether convertible into money or not - has been considered by the Hon ble High Court of Karnataka in the case of CIT Vs. Mysore Commercial Union Ltd., 126 ITR 340 wherein it has been held that provisions of any perquisite which may be one that is convertible into money or not i.e is a provision of something in kind which may be capable to being converted into money or not but not money itself is not a perquisite within the meaing of sec. 2(24)(iv) of the Act. This view has been approved by the Hon ble Supreme Court in the case of CIT Vs. Mafatlal Gangabhai reported in 219 ITR 644. 14. Thus, it can be seen that only a benefit or perquisite in kind can be treated as income. Donations in the form of cash cannot be treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thi and hence includible in his income u/s 56(2) can also be considered in the case of Peetadhipathi only. 17. Though the learned counsel for the assessee vehemently argued that the said observation is not warranted, we find that the said observation of the CIT(A) is only to strengthen his finding that the contributions are not chargeable to tax in the hands of the assessee. There is no direction by the CIT(A) to the AO to take any action on the basis of said observations. In fact, we find that the said observations are in favour of the assessee herein. In view of the same, we do not see any substance in the Cross-objection and they are also dismissed. 18. In the result, the appeals filed by the Revenue and the Crossobjections file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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