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2012 (1) TMI 77 - HC - Income TaxSociety registered u/s 12A & 80G - pledged FDRs with a bank to enable some other societies to obtain loan from a bank – few members of the management committee of the respondent society and other two societies are common – Revenue contending violation of Section 13(1)(c)(ii) read with Section 13(3) and Explanation 3 (ii) – non-utilization of grant received fully – Held that:- A.O. has not been able to record any finding that the persons in control of the management of the three societies had, at any point of time, not less than 20% shares in the profits of such concern. This being the position, invocation of Section 13(1) (c) (ii) has to fail and is accordingly rejected. Grants were received for specific purposes/projects from the government, non-government, foreign institutions etc. In case of specific tied up grants, money is received for specific purposes and is to be utilized for the same. Unutilized amount has to be refunded back to the funding agencies. On the basis of the evidences placed on record, it is seen that the appellant is not free to use the funds voluntarily as per its will and, thus, these are not voluntary contribution as per Section 12 of the Act - Decided against the Revenue
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