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2018 (9) TMI 1031 - HC - Income TaxAddition on account of un-utilized funds for overseeing the project on behalf of the Ministry of Road Transport and Highways - Held that:- We would therefore not upset the finding that the money in the separate bank account in the name of the respondent-assessee was not a grant, but an amount that belonged to the Ministry. This being the position we do not find any merit in the submission made by the Revenue that the amount received from the Ministry belonged to the respondent-assessee and was their income. The amount received in view of the factual findings cannot be treated as revenue receipt or income of the assessee. There is case law that money or payment received in trust and in fiduciary capacity, should not be treated as income earned as has been held in Commissioner of Income-tax Vs. Sandersons and Morgans (1968 (4) TMI 17 - CALCUTTA HIGH COURT). In this case it was observed that solicitor’s lien over the advance money received was no different than a person having charge over someone else money. Money received to be income should have profit making quality in it. Every receipt is not income earned. Reference can be also made to Commissioner of Income-tax, Kerala Vs. Mrs.Doris S. Luiz (1973 (12) TMI 11 - KERALA HIGH COURT). Interest earned during the period relevant to the assessment year but not accounted for in the income of this year - addition was deleted by the Commissioner of Income Tax (Appeals), who has observed that the assessee had received contributions in foreign exchange for two projects, i.e. 'SIMBA' and 'STADIUM' - Held that:- The contributions had required permission from the Ministry of Home Affairs, Foreign Contribution Division. Further, this Ministry had imposed restriction on use of the contributions till the permission/registration was accorded by them. Registration under Foreign Contribution Regulation Act was granted to the respondent/assessee on 6.11.2013. Therefore, the interest accrued till 31.03.2012 to the tune of ₹ 2,83,477/- was included as income for the Assessment Year 2014-2015, i.e. after the respondent/assessee had secured registration under the Foreign Contribution Regulation Act. Interest amount has been taxed, albeit in the said year.
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