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2022 (7) TMI 596 - AT - Income TaxAssessment of trust - addition made by the AO towards the amount transferred to the society holding the same as application of income - amount transferred to the society was only application of money and not a genuine expenditure in the assessee - assessee is an AOP of Cardiological Society of India (CSI), which is a registered society under the Societies Registration Act XXI of 1961 of West Bengal - HELD THAT:- We noted that the payments made by the assessee entity in accordance with bye-laws / specific purpose for which it was constituted and the AO has not disputed the nature of contribution made by assessee or the receipts transferred being directly in nexus with the income earned during the assessment year under consideration and the amount transferred. In our view, the surplus generated from conducting conference of the CSI would not become income in the hands of the assessee because this was a tool created by the CSI society and it in no way can be called application of income on diversion. As the assessee has already transferred these receipts to CSI, Headquarter Kolkata and CSI, Chennai chapter in the ratio prescribed as per byelaws and according to us, as ratio laid down by the Hon’ble Supreme Court in the case of Sitaldas Tirathdas [1960 (11) TMI 17 - SUPREME COURT] the amount collected by assessee AOP for organizing conference on behalf of these two entities, the excess amount can be held as the amount in trust and in no way that can be held as the income of the assessee. Hence, we agree with the findings of the CIT(A) and the same is confirmed. The appeal of Revenue is dismissed.
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