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2014 (8) TMI 565 - HC - Income TaxExemption u/s 10(23C)(iiiad) Sale of bonds and property Capital receipt or non-recurring receipt - Whether the Tribunal was right in holding that the receipt from the sale of bonds and property had to be excluded from the aggregate receipts received during the year by treating the receipts as capital receipt and non-recurring receipt in nature and thereby arriving at the aggregate receipts of less than 1 Crore and consequently holding that assessee is entitled to exemption under Section 10(23C)(iiiad) Held that:- CIT(A) while accepting the plea of the assessee that the sale proceeds of land and bonds is capital in nature and not recurring income, 85% of the sale proceeds have been expended by the assessee in furtherance of the object of the Trust CIT(A) has rightly classified the annual receipts during the financial year 2003-04 being the annual and recurring income of the assessee - The sale proceeds of land and bonds which are capital receipts in nature, are not recurring and are once in a lifetime - The key emphasis is on the words annual receipts - The sale proceeds of land and bonds cannot be equated to annual receipts as stated u/s 10(23C) of the Act - The sale is in the nature of conversion of a capital asset from one form to another no substantial question of law arises for consideration Decided against Revenue.
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