9911796707
TMI Blog2012 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee i.e. the income and assets of the assessee society were used for the benefit of the individual/person specified u/s 13(3) of the Act. c) Because ITAT has grossly erred in law in passing the impugned order ignoring that the assessee has not maintained the separate books of accounts for each donor agency during the assessment year under consideration. d) Because the ITAT has grossly erred in passing the impugned order in view of the fact that the procedure of account adopted by the assessee was incorrect as in contravention of the provisions of Section 12 of the Act, as has been held by the Hon'ble Supreme Court in the case of Motilal Padampur Sugar Mills Co. Ltd. Vs. State of Uttar Pradesh (1979) 118 ITR 326." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ammes. 4. The assessee had FDRs of Rs.12,00,000/-, which were placed as collateral security for allowing credit facility to two societies, namely, Tara Nirman Kendra and Society for Technology and Action for Rural Advancement. These two societies are also carrying on charitable work. As per the findings recorded by the tribunal, some members of the management committee of the respondent society and these two societies are common. The tribunal has recorded that interest on the FDRs was paid to the respondent-society and on maturity date, the pledged FDRs were encashed and the principal amount along with interest was paid to the respondent-assessee. This factual position is not disputed. 5. For violation of Section 13(1)(c)(ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itled, or such person and one or more of the other persons referred to in sub-section (3) are entitled in the aggregate, at any time during the previous year, to not less than twenty per cent of the profits of such concern." 6. Learned counsel for the appellant-Revenue was asked to point out whether the Assessing Officer has recorded any finding that the persons in control of the management of the three societies had, at any point of time, not less than 20% shares in the profits of such concern. He has not been able to point out any such finding in the order passed by the Assessing Officer. This being the position, invocation of Section 13(1) (c) (ii) has to fail and is accordingly rejected. 7. With regard to the second cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms and conditions of the grant. If the appellant fails to utilize the grants for the purpose for which grant is sanctioned, the amount is recovered by the funding agency. On the basis of the evidences placed on record, it is seen that the appellant is not free to use the funds voluntarily as per its sweet will and, thus, these are not voluntary contribution as per Section 12 of the Act. These are tied up grants where the appellant acts as a custodian of the funds given by the funding agency to channelize the same in a particular direction. In case of voluntary contribution, the appellant is free to use the money as per its will and neither have to render the account of the same to the donor nor the same is monitored by the donor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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