TMI Blog2014 (8) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - T. C. (A). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,034/-). During the financial year 2003-2004, the assessee sold its land for a value of ₹ 2 Crores and bonds for a value of ₹ 69,13,717/-. Out of the sale proceeds, the assessee invested ₹ 2.50 Crores for the purpose of purchasing property from a developer. The assessee claimed before the Assessing Officer that the annual receipt of the assessee during the financial year is ₹ 51,86,887/-, being the annual and recurring income of the assessee. The sale proceeds of the land and bonds are capital receipts and not recurring income, as such income is received once in a life time out of sale of asset. It was contended before the Assessing Officer that the sale proceeds of land and bonds is not an annual receipt and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the department preferred an appeal before the Tribunal and the Tribunal, while accepting the finding rendered by the Commissioner of Income Tax (Appeals), held as under: 11. So far as monetary limitation provided under section 10(23C)(iiiad) is concerned, the assessee has received annual receipt by way of rent of ₹ 51,86,887/-, which is below ₹ 1.00 Crore. In so far as other receipts i.e. sale proceeds from land and bonds received by the assessee of ₹ 2.00 Crores is concerned, those items were purchased by the assessee long back and sold in the year under consideration and purchased property and the receipts out of that property were used for the purpose of maintaining the assessee's educational institution. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by any person on behalf of-- (i) to (iiiac) ...... (iiiad) any university or other educational institution existing solely for educational purposes and not for purposes of profit if the aggregate annual receipts of such university or educational institution do not exceed the amount of annual receipts as may be prescribed 5. We find that in the above said provision the key emphasis is on the words annual receipts . The sale proceeds of land and bonds cannot be equated to annual receipts as stated under Section 10(23C) of the Act. The sale in the case on hand is in the nature of conversion of a capital asset from one form to another. Therefore, the denial of the benefit of Section 10(23C) of the Act to the assessee by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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