TMI Blog2012 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) has to fail and is accordingly rejected. Grants were received for specific purposes/projects from the government, non-government, foreign institutions etc. In case of specific tied up grants, money is received for specific purposes and is to be utilized for the same. Unutilized amount has to be refunded back to the funding agencies. 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 will and, thus, these are not voluntary contribution as per Section 12 of the Act - Decided against the Revenue - ITA Nos. 12/2012 & 18/2012 - - - Dated:- 13-1-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V.EASWAR, JJ. For Appellant: Mr. Abhishek Maratha, Sr. Standin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the FDRs with a bank in order to enable some other societies to obtain loan from a bank. He submits that this had resulted in violation of Section 13(1) (c) (ii) read with Section 13(3) and Explanation 3 (ii) of the Income Tax Act, 1961 (Act, for short). Secondly, it is submitted that the respondent-society had not utilized the grants and a sum of Rs.16,92,50,496/- and Rs.24,42,82,067/- had remained unspent as on 31st March, 2006 and 31st March 2007 respectively. 3. The respondent is a society, which is registered under Section 12A and Section 80G of the Act. It is undertaking activities relating to research, development and dissemination of (i) Technologies for fulfillment of basic needs of rural households (ii) Solutions for regenera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 13. Section 11 not to apply in certain cases xxx (3) The persons referred to in clause (c) of sub-section (1) and sub-section (2) are the following namely: (a) the author of the trust or the founder of the institution; (b) any person who has made a substantial contribution to the trust or institution, that is to say, any person whose total contribution up to the end of the relevant previous year exceeds 6[fifty thousand] rupees; (c) where such author, founder or person is a Hindu undivided family, a member of the family; (cc) any trustee of the trust or manager (by whatever name called) of the institution; (d) any relative of any such author, founder, person, member, trustee or manager as aforesaid; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax (Appeals) while deleting the said addition had observed as under:- I have considered the assessment order and submissions of the appellant along with evidences placed on record. On perusal of the evidences regarding the project grants placed on record, it is seen that the said amounts are received/sanctioned for a specific purpose/project to be utilized over a particular period. The utilization of the said grants is monitored by the funding agencies who send persons for inspection and also appoint independent auditors to verify the utilization of funds as settled terms. The appellant has to submit inter/final progress/work completion reports along with evidences to the funding agencies from time to time. These agreements also ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
