Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 891 - AT - Income TaxDiversion of income by overriding title - interest earned on grants – Grants received and shown as payable to the Govt. of Gujarat – Held that:- Following Gujarat Municipal Finance Board Versus Deputy Commissioner Of Income-Tax (Assessment) [1996 (5) TMI 71 - GUJARAT High Court] - the interest was diverted at source by an overriding title in favour of the State Government - the interest was held not to amount as income of the Gujarat Municipal Finance Board and it was held that the interest was diverted to the State Government by an overriding title - The directive was reiterated in the certificate issued by the Principal Secretary - The directives created an overriding title in favour of the State Government so far as the interest element was concerned – thus, the interest cannot be assessed as the assessee's income - CIT(A) has rightly followed the order of the Tribunal – Decided against Revenue. Deletion of refund of grant to DRDA – Held that:- As decided in assessee’s own case for the previous year, it has been held that the assesee is entitled to succeed - once the amount is assessed as income, it cannot be added back to the assessee's income over again - the grants cannot be assessed as income as they were made for specific or assigned projects – relying upon C1T Vs. Ganga Charity Trust Fund [1985 (10) TMI 67 - GUJARAT High Court] - for the purpose of applying the income of the trust for charitable purposes, income derived from the trust property must be determined on commercial principles and in doing so, all outgoings including income-tax must be deducted and it is only from the surplus income in the hands of the trustees that the question of application of income can arise - the amount which was earlier assessed as income, refunded to DRDA during the year, constitutes a deduction while ascertaining the application of the income for the purpose of section 11(1)(a) of the Act – Decided against Revenue.
|