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TMI Blog2023 (6) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... her than for which such grants were received by the assessee. The unutilized grants have been refunded back by the assessee to the Government. The assessee has also furnished the details of the funds received by the assessee for specific infrastructure projects, the details of utilization of such funds for those specific infrastructure projects. The grants received by the assessee for specific infrastructure projects which has also been utilized for those specific purposes only and since the assessee was not authorized to use the said grants for any other purpose and further that the unused funds have been returned to the Government, therefore, the aforesaid grants, in our view, do not constitute the income of the assessee. Decided in fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Exemption) dated 21.05.2016. During the previous year relevant to the assessment year under consideration, the assessee received general-purpose fund and specific purpose fund from the Government of West Bengal. The general-purpose fund, which was granted to the assessee primarily for funding the administrative expense such as payment of salary, bonus etc., was duly credited to the Income Expenditure Account of the assessee-appellant and the same was offered to income tax for the relevant assessment year in the statement showing computation of total income of the appellant. The specific purpose fund such as fund granted to the assessee-appellant for construction of fly over or flood shelter or school building etc. was directly t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en it must set apart such income for specific purpose u/s 11(2) of the Act by furnishing Form 10. In absence of such option, the assessee has to apply 85% of its entire income received during the year within the year itself, to avail exemption u/s 11 of the Act. Any shortfall in applying 85% of income, was squarely taxable in absence of option vide Explanation 2 to section 11(1) or claim of set apart vide section 11(2) of the Act. In this instant case, no such option was exercised or Form 10 was submitted. The Assessing Officer therefore, added back the Government grant received by the assessee of Rs.25,01,54,352/- as income for the year under consideration. 4. The ld. CIT(A) also confirmed the additions so made by the Assessing Officer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de the nature of the receipts. The assessee was not authorized to utilize the said grants for any other purposes other than for which such grants were received by the assessee. The unutilized grants have been refunded back by the assessee to the Government. The assessee has also furnished the details of the funds received by the assessee for specific infrastructure projects, the details of utilization of such funds for those specific infrastructure projects. In view of this, the grants received by the assessee for specific infrastructure projects which has also been utilized for those specific purposes only and since the assessee was not authorized to use the said grants for any other purpose and further that the unused funds have been retu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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