Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 968 - HC - Income TaxAccrual of income - Unspent amount of donations - assessment year selection - Assessee showing part of the donations under the head ‘current liabilities’ - Whether donations received by the Assessee, Akshaya Patra Foundation in the mid of the Financial Year with the stipulation from the donors that part of the said money may be utilized for the specified charitable purpose in the next financial year can be treated as the income for year of receipt of the donation or not? - Held that:- Tribunal in his order supported CIT(A) view regarding the issue where it is said that when the assessee is complying with the specific condition of utilizing the amount of donation for a particular purpose and for a particular period of time, then it cannot be given a different treatment which is contrary to the conditions of donation. The treatment of the assessee only a portion of the donation which has to be spent and used for a particular period and for a specified purpose as income of the year under consideration is proper and as per the conservative accounting policy. The donation which pertains and to be used and spent during the next F.Y. cannot be treated as the income of the year under consideration when there is a specific condition as desired by the donor. No substantial question of law arises in these present appeals filed by the Revenue and the findings and reasons assigned by the two Appellate Authorities below in this regard are justified and in accordance with the consistent accounting practice followed by the assessee - thus appeal is dismissed.
|