2018 (6) TMI 968

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t when the assessee is complying with the specific condition of utilizing the amount of donation for a particular purpose and for a particular period of time, then it cannot be given a different treatment which is contrary to the conditions of donation. The treatment of the assessee only a portion of the donation which has to be spent and used for a particular period and for a specified purpose as income of the year under consideration is proper and as per the conservative accounting policy. The donation which pertains and to be used and spent during the next F.Y. cannot be treated as the income of the year under consideration when there is a specific condition as desired by the donor. No substantial question of law arises in these pres .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed income for these two assessment years is the proportionate amount to be utilized in the subsequent year because the donors have specifically stipulated the donations regarding its use over a period of time which spread over to more than one year. Accordingly the assessee has treated the income of the year only to the extent which pertains to the time period during the year under consideration. The Assessing Officer has denied the claim of the assessee without disputing the fact that the donations in question were received with stipulation regarding its use over a period of time. Thus if the donations is received in the mid of the F.Y. and the same was to be used over a further period of 12 months then only half of the donations to be use .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of the CIT (Appeals). Accordingly, we uphold the finding of the CIT (Appeals) on this issue and dismiss the appeals of revenue. 3. Learned counsel for the appellant-Revenue submitted that the Assessee has erred in showing part of the donations under the head current liabilities in its books of accounts at the end of the Financial Year to the extent of the donations to be utilized by the respondent- Assessee for the specified charitable purpose in the next financial year. Accordingly, learned counsel for Revenue, the same could not have been so shown as current liabilities . 4. Both the Appellate Authorities have concurrently held in favour of the respondent-Assessee that the unspent amount of donations to be spent in the next fin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X