TMI Blog2014 (1) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income computed by the Assessing Officer. The assessee may be seeking exemption u/s 11, but, it does not form part of the assessed income as computed by the Assessing Officer and this is sufficient to establish the nexus between the amount of income assessed by the Assessing Officer and also established requisite filing fees - The expression 'in the case to which the appeal relates' have been coined in clauses (a) to (c), it indicates the clear intention on the part of the Legislature to inter-link with the amount of income assessed by the Assessing Officer in case of all appeals, which have related to the amount of assessed income including appeals in penalty for concealment - Residuary clauses introduced as clause (d) with effect from 01/06/1999 takes care of all appeals including the appeals against certain penalties, which have no nexus with the amount of income assessed - If the expression 'case' used in subsequent used to be read as assessment order if the expression 'case', then, for the period prior to 01/06/1999 when clause (d) was inserted no filing fees would be leviable inspite of appeals filed by the assessee against the orders other than assessment orders - Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned in the statement annexed. It can be seen from the details the appellant acted as an agent for various donor in implementing the projects on their behalf. The appellant did not undertake any project on it's own nor received any donation exclusively for the purpose of running the Society. 3.1 However, the appellant with an object of registering itself u/s 12AA of the I.T. Act filed an application for registration u/s 12A before the Commissioner of Income Tax, Guntur on 5.19.1992. In response thereto the CIT issued memorandum dated 23.11.1992 followed by a letter dated 22.12.1992 by the ACIT, Circle-1, Anantapur. The appellant society responded immediately thereafter and filed the information required. Finally, till 6.11.2002, the CIT concerned did not pass any order either rejecting or allowing registration u/s 1.2A. On 6.11.2002, the CIT, Tirupati issued a letter requiring the assessee to file a fresh form 10A as the copy filed earlier cannot be acted upon. Accordingly, vide letter dated 23.11.2002, the appellant filed all the details. And copy of the application and the earlier correspondence. The appellant also annexed a copy of the application dated 5.10.1992. The CIT, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the assessee is under the Finance Act but that is only for the purpose of charging income- tax in respect of the total income and for no other purpose. The tax on the total income of the assessee other than agricultural income is determined by deeming the agricultural income as part of the total income and by this provision, it cannot be concluded that the agricultural income forms part of the total income as such. The provisions of section 2(2) of the Finance Act, 1993, make it clear and provide that where the assessee has in the previous year any net agricultural income exceeding Rs. 600 in addition to the total income and the total income exceeds a particular amount, then the net agricultural income shall be taken into account as if the net agricultural income was comprised in the total income after the prescribed limit of the total income but without being liable to tax and this is only for purposes of charging income-tax in respect of the total income. Here, the deeming agricultural income to be a part of the total income is only for a limited purpose and that deeming cannot be extended to mean that the agricultural income also forms part of the total income of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s income or corpus since the assessee is acting as agent for funding agencies. The Assessing Officer while considering the replies given by the assessee has stated as under: "The funding agencies in its letters states that the grants were sanctioned project-wise for specified period as per the proposals submitted by the assessee. The grants sanctioned were released in instalments; date/financial year-wise for utilisation on specified purpose without any specification of time limit. This implies that the assessee has to utilize the grants sanctioned within the financial year under which grants were sanctioned. There was no specific condition for returning of unspent grants. The assessee's contention that the grants received with specific purpose does not form the income of the assessee in case of unspent grants is not acceptable. The grants are received for specific purpose and utilisation for the year under consideration. The assessee fails to utilize the grants within the specified period, i.e. during the year. The unspent grants are considered as income. The other receipts under interest and local donations admitted by the assessee are not tied-up grants and the nature of these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 253(c) of the IT Act. According to the assessee, the case falls under clause (d) of the above section, once exemption u/s 11 is granted to the assessee. In the present case, what to be seen is that the figure that determines the quantum fees payable and it relates to the quantum of total income computed by the Assessing Officer to which the appeal relates. As seen from the above table of computation done by the Assessing Officer, the income of the assessee relates to income determined by the Assessing Officer, which is more than Rs. 2,00,000/-. Being so, the fees payable is 1% assessed income subject to a maximum of Rs. 10,000/-. The word 'in the case to which the appeal relates' in clause (a), (b) and (c) of section 253(6) should be understood so as to cover all appeals, which are filed in the case of the assessee where the appeal is filed against the order which is based on quantum of income assessed. In the present case, the appeals are untenably connected with the assessment order, more particularly, with the total income computed by the Assessing Officer. The assessee may be seeking exemption u/s 11, but, it does not form part of the assessed income as computed by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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