Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 1064 - PUNJAB AND HARYANA HIGH COURT

2015 (12) TMI 1064 - PUNJAB AND HARYANA HIGH COURT - TMI - Donation of gold chhabba - whether in light of explanation to Section 2(24) (iia) of the Act, the Dera is not a deemed trust? - Held that:- There is no force in the argument of learned counsel for the appellant that entire activities done by the appellant were of charitable and religious in nature and were being done in the name of Dera. It is completely devoid of any merit, because the Dera, Sant Amir Singh Ji, of whom, the appellant-as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Revenue Authorities that the entire affairs of the Dera, i.e donations/collections were solely managed and controlled by the appellant-assessee, according to his own whims and fancies in his individual capacity.

The Tribunal has rightly observed that the collection certificates were also stereo-typed without any PAN etc. Even no effort was made to produce any so called donation affirming the same. Bank accounts were found in the sole name of the appellant-assessee without indicating a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l have found on the basis of material before them that the appellantassessee had purchased LIC policy, gas connection, cylinder etc. from the so called funds of the Dera, which were indicative of the fact that the bank account was being operated by him for his personal use. The cumulative effect of all these factors shows that all the transactions done by the appellant-assessee, were in his individual capacity and thus, no case to differ with any of the findings of the Tribunal upholding the dec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he Income Tax Appellate Tribunal, Amritsar (in short 'the Tribunal') in ITA No. 440/ASR/2012 for the assessment year 2009-10 claiming the following substantial questions of law:- i. Whether in the facts and circumstances of the case the donation collected for specific project could have been added to the personal income of the appellant? ii. Whether in the facts and circumstances of the case in light of explanation to Section 2(24) (iia) of the Act, the Dera is not a deemed trust? iii. W .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 7,42,848/-and adding the same amount back is sustainable in law? 2. Brief facts of the case are that the appellant filed return of his income for the Assessment Year 2009-10 on 31.3.2010 declaring income of ₹ 2,10,870/-. The said return was processed under Section 143(1)(a) of the Act. Subsequently, the case was selected for scrutiny. Accordingly, notice under Section 143(2) of the Act was issued to the appellant, besides a notice under Section 139C(1)/139D(c) of the Act, requiring t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s activity and not maintaining any personal bank account. He was residing in Dera of Sant Amir Singh Ji, Bazaar Satto Wala, Amritsar. Expenses towards electricity, telephone and water were being borne by aforesaid Dera. Some mobile phone expenses were incurred by him in 2008-09, details of which were furnished in the Income & Expenditure Account etc. The Assessing Officer vide assessment order dated 17.11.2011 (Annexure A-1) made an addition of ₹ 1,21,67,653/- by treating the bank depo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ggrieved with the same, the appellant filed an appeal before the Commissioner of Income Tax (Appeals), Amritsar [for brevity the CIT(A) ], who dismissed the same vide order dated 18.10.2012 (Annexure A-2). Still dissatisfied, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 28.1.2014 (Annexure A-3) dismissed the appeal. Hence, the present appeal by the assessee. 3. Learned counsel for the appellant argued that the authorities below have failed to appreciate the dua .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

same are of the Dera. The appellant was merely operating the same. The authorities below have miserably failed to appreciate that the appellant was only operating the bank account and doing his duty as care taker. The authorities below have erred in not appreciating the fact that the donations received from general public cannot be treated as income from business of the appellant, more particularly, when the same were 'corpus' donations. The Assessing Officer, the CIT(A) and the Tribuna .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Sukhdeo Charity Estate, Landu v. CIT, Rajasthan, Jaipur, (1984 ) 149 ITR 470 (Raj); Commissioner of Income Tax (Central), New Delhi v. Bijli Cotton Mills (P) Ltd., AIR 1979 SC 346; CIT, West Bengal v. Tollygunge Club Ltd., AIR 1979 SC 1343; CIT, Kanpur v. Sant Baba Mohan Singh, (1979) 118 ITR 1015 (All.); and CIT v. Baba Avtar Singh, (1972) 83 ITR 738 (Del.). 4. On the other hand, learned counsel for the respondents pleaded the legality and validity of the impugned order passed by the Tribunal. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

llant-assessee had nominated his son Amandeep Singh as his nominee in case of his death. Upon being asked from the appellant-assessee that when the account was in the name of Dera and not his personal account, then in what capacity, he could nominate his son as his nominee, he could not submit any satisfactory reply. In these circumstances, the Assessing Officer treated the aforesaid bank account as individual account of the appellantassessee. 7. There is no force in the argument of learned coun .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

It has also not obtained any certificate under Section 10 (23C) (iv) of the Act. Its account were never audited under any law. Even no approval under Section 80G(5) of the Act was ever obtained from any prescribed authority. It was evident before the Revenue Authorities that the entire affairs of the Dera, i.e donations/collections were solely managed and controlled by the appellant-assessee, according to his own whims and fancies in his individual capacity. 8. The Tribunal has rightly observed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s that any charitable activities was ever been carried out by him as prescribed under Section 2(15) of the Act. Its affiliation with any other charitable institution was also not proved. The Assessing Officer, the CIT(A) and the Tribunal as well have found on the basis of material before them that the appellantassessee had purchased LIC policy, gas connection, cylinder etc. from the so called funds of the Dera, which were indicative of the fact that the bank account was being operated by him for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

registered under the Societies Registration Act, 1860, besides under Section 12AA of the Act. Its object was to promote the implementation of EGovernance using information technology in the State of Punjab. It received many grants from the State Government and interest from the banks on the deposits. The Assessing Officer assessed those grants as its taxable income, being failed to spent 85% out of it, as required under Section 111 of the Act, besides interests thereon as taxable income, being s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ired to be refunded to the distributing agency and as such considered by the assessee as income in its Income Expenditure Account, but has been shown in the balance sheet. The other types of grants received by the assessee as general grants, do not carry such restrictions, has been credited by the assessee as income in the Income Expenditure Account. A Coordinate Bench of this Court upholding the decision of the Tribunal held that grants-in-aid received from the Government for specific purpose, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s one crore to it. 10. In Society for Development Alternatives' case (supra), the respondent was again a registered society. It was undertaking the activities related to research, development and dissemination. Whereas, in the instant case, the appellant has miserably failed to prove any of its activities as of religious or charitable nature. 11. In Sukhdeo Charity Estate's case (supra), it was held that the voluntary contributions received from another trust were not assessable as incom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version