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2014 (11) TMI 100 - ITAT DELHIDiversion by overriding title in respect of infrastructure contribution untenable or not – Held that:- Following the decision in Mussoorie Dehradun Development Authority Versus Addl. CIT [2011 (12) TMI 375 - ITAT, Delhi] AO found that assessee had claimed to be maintaining an "infrastructure fund" to which a fixed portion of its receipts is credited and out of which infrastructure related expenses are incurred – assessee contended that the State Government has an overriding title on these receipts and, therefore, they do not form part of the total income of the assessee - assessee has source of income from more than 18 counts, out of that certain incomes are of miscellaneous income, rental income, interest income on FDRs - an authority was given to the assessee for collecting certain fees and charges in the process of its functioning - If the State Government had collected the fees and charges and then given the same to the assessee for doing its work, it would be the assessee's income - it does not make any material difference to the situation if the government has allowed the assessee to collect fees and charges directly instead of infusing the funds by it in the assessee - the assessee could retain the funds collected by it under this Act - its powers to collect the funds are already in existence u/s 20 of the Act - It has to credit the fees and charges collected by it to its own funds and which is to be applied towards fulfillment of assessee's object. The office memorandum specifically provides that 80 per cent of the amount from this account would be spent on capital expenditure and 20 per cent can be spent on revenue account - it reveals that assessee has source of income from more than 18 counts, out of that certain incomes are miscellaneous income, rental income, interest income on FDRs – the 'infrastructure funds' as a separate entity, independent of assessee is a fiction - It is not registered under s. 12A of the Act and claimed the benefit of exemption under ss. 11 and 12 of the Act – thus, the order of the CIT(A) is upheld - Decided against the assessee.
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