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TMI Blog1980 (7) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... institution. The ITO also rejected the assessee's claim that the above donations were made towards the corpus of the institution. On appeal, the AAC confirmed this order. 3. Before us, the ld. Rep. for the assessee pointed out that the assessee was running a permanent boarding and lodging house for the aged people, that for the purpose of constructing a building for the above purpose, it appealed for funds by way of donations, that accordingly, the assessee institution received donations of the above sums, specifically ear-marked for the corpus of the institution, that as a matter of fact, the above amounts were utilised for the construction of the building, which was supported by entries in the balance-sheet and that, before the AAC, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te that the institution was maintained mainly by public donations. During the accounting years under consideration, the assessee-institution had received sums of Rs. 61,886 and Rs. 26,625 respectively from donors who made voluntary contributions. The assessee claims that such voluntary contributions were made with the specific direction that they shall form part of the corpus of the institution. In supports of the above claim, the assessee had produced several letters from the donors. The AAC has referred to these letters. The AAC has observed that the letters showed that the donors intended the contributions only towards construction of a building in the premises owned by the assessee. The AAC however, rejected the assessee's claim on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove view by the ruling of the Allahabad High Court in the case of Dwarkakdheesh Charitable Trust vs. ITO, Kanpur, reported in (1975) 98 ITR 557 (All), cited before us, on behalf of the assessee. We are, therefore of the opinion that the above amounts contributed voluntarily by the donors with a specific direction that they should be utilised for the construction of the building for the assessee institution and which were actually utilised for that purpose form part of the corpus of the institution and, therefore, they would not constitute 'income' in accordance with the provisions of s. 12 of the IT Act, 1961, as amended by Finance Act, 1972, w.e.f. 1st Apr., 1973 which applies to the year under appeal. We, therefore, hold that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have considered the rival submissions. Under s. 32 of the IT Act, 1961, depreciation is admissible on buildings, machinery, plant or furniture owned by an assessee and used for the purpose of business or profession. Sec. 2(36) of the IT Act defines 'Profession' to include 'vocation'. 'Vocation' is defined in Oxfords Illustrated Dictionary as under: "Divine call to, sense of fitness for a career or occupation, employment, trade, profession." The assessee, in this case, is running a permanent boarding and lodging house for the aged people. The inmates of the institution are said to be given food, shelter and medical facilities. We are of the opinion that the activities of the assessee-institution would fall within the meaning of the te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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