9911796707
TMI Blog2014 (2) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2006-07, assessment on total income was made to the tune of Rs. 21,73,91,450/- u/s. 143(3) of the Act. The interest of the said amount worked out to be Rs. 9,82,70,573/- earned by the assessee Trust payable under the head of "Current Liabilities" payable to the Govt. of Gujarat. Out of the total amount granted to the assessee - respondent by District Rural Development Agency, a sum of Rs.13,00,00,000/- was refunded to it as an unspent grant. The Assessing Officer made an addition of Rs.13,00,00,000/- to the income of trust on the ground that the same could not apply for the purpose of trust. 2. This was challenged before the CIT (Appeals). It concurred with the order of assessing officer and confirmed the assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction and rehabilitation. It further gets revealed that the same was directed to be kept in a separate bank account with the specific directions that the amount of interest is deposited with the State Government in the consolidated fund as the amount given to the State Government by World Bank and ADR includes 30% grant and 70% loan to be repaid by the State Government at the rate of 12% of interest. Tribunal observed that the grants are made by the State Government out of the fund received from the World Bank, Asian Development Bank (ADB), Govt. of India, United Nations Development Programme, Japan Fund for Poverty Reduction and also from other Central and State Government Agencies. It further observed that this grants were provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablishment, provided for the pay-scales, etc. and for implementation of the scheme, a committee headed by the Deputy Minister for Social Justice and Empowerment was also constituted. The Committee also included several Government officials. From the above, it can be seen that detailed provisions were made for allotment of funds to the respondentassessee. It was a scheme envisaged for implementation of certain Government programmes in particular, to uplift the living condition of manual scavengers and other Safai Kamdars involved in similar activities. Though exact words may not have been used that the funds made available are directed to from the corpus of the Corporation and to be used for such purpose, the entire purport of the scheme h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asonings on the said issue. 10. As far as Issue No.3 is concerned the same relates to the additions made by the assessing officer on refund of grant to the District Rural Development Agency (DRDA). The assessee accordingly to the Tribunal was asked to explain how the refund can be treated an application of the income of the trust. It claimed that the refund amounted to application of income of the trust which was rejected by the Assessing Officer and CIT (Appeals) endorsed the view taken by the Assessing Officer by holding that the amount refunded did not form part of the funds made available to the assessee for being applied to the trust. Tribunal after careful consideration of rival contentions of the parties quashed findings of CIT (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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