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2012 (1) TMI 302 - ITAT BANGALORE

2012 (1) TMI 302 - ITAT BANGALORE - TMI - ITA No.1382 and 1535 /Bang/2010 with CO No.10 and 11/Bang/2011 - Dated:- 31-1-2012 - SHRI N.K SAINI, ACCOUNTANT MEMBER AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER. Revenue by : Smt. Susan Thomas Jose Assessee by : Shri Ashok A Kulkarni ORDER PER P MADHAVI DEVI, JUDICIAL MEMBER : These appeals are filed by the Revenue and the Crossobjections are filed by the assessee. These appeals are directed against the order of the Commissioner of Income-tax (Appeals) at .....

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e decision of Hon ble Supreme Court in the case of Dr. K George Thomas Vs. CIT for contending that the Peetadhipathi of the trust being sole beneficiary of the trust, any gifts received from preaching and propagating religious faith constitutes professional income. 3. The brief facts of the case are that the assessee is a trust. The trust has been created vide trust deed dated 19.12.2002 and the only beneficiary of the trust is Peetadhipathi of Sri Ganapati Sachchidananda Avadhoota Datta Peetha .....

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ules applicable for institutions seeking exemption u/s 11 of the Act. The status of the assessee in the said return was shown as AOP. The return of income filed for the assessment year 2003-04 was not rejected by the Revenue authorities and, therefore, the assessee presumed that the same has been accepted. For the asst. year 2004- 05, the assessee filed its return of income disclosing the total taxable income of ₹ 46,296/- and advance tax on the same was also paid. In the return of income, .....

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t to verify and carry on investigation if need be. The AO however treated the sum of ₹ 18,40,837/- as taxable income and disallowed the expenses of ₹ 77,444/- claimed towards traveling charges and repair charges of ₹ 92,431/- on the ground that they were personal expenditure. 4. Aggrieved, the assessee preferred an appeal before the CIT(A) stating that the amounts in question are donations from the donors for the benefit of the trust and, therefore, are not taxable. He also que .....

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income from house property nor profits or gains of business nor capital gains. Thus, the CIT(A) deleted the addition and allowed assessee s appeal. 6. Aggrieved, the Revenue is in appeal before us. 7. The learned DR while supporting the order of the AO, submitted that the definition of income given at sub sec. 24(iva) of sec.2 includes the value of any benefit or perquisite whether convertible into money or not, obtained by any representative assessee mentioned in clause (iii) or clause (iv) of .....

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wakf deed which is valid under the Mussalman Wakf Validating Act of 1913] receives or is entitled to receive on behalf or for the benefit of any person, such trustee or trustees. 8. She submitted that the assessee trust has been founded solely for the purpose of taking care of the Peetadhipathi and, therefore, it is not for any charitable or religious purposes but for the individual benefit of the Peetadhipathi and as per the definition u/s 160 of the Income-tax Act, the trust which receives th .....

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ibutions received by the assessee trust are in the form of cash or cheques and the details of the donors and their Pan No. were all provided to the AO. He also drew our attention to the copy of the trust deed filed in the paper book demonstrating that it is a trust registered on the 19th of Dec, 2002 and at page 31 of the paper book are the details of donations received during 2004-05 to demonstrate that all the donations received were in cash or by cheques. He also drew our attention to Annexur .....

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4. He submitted that this issue is also been clarified by the CBDT Board Circular, which is available at 98 ITR statute 97. 11. Having heard both the parties and having considered the rival contentions, we find that the basic issue before us is as to whether the contributions/donations received by the assessee are to be treated as income of the assessee u/s 2(24(iva) of the Income-tax Act. Sub sec. (24) of sec. 2 gives the meaning of income . For the purpose of clarity, the relevant part of prov .....

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m paid by the representative assessee in respect of any obligation which, but for such payment, would have been payable by the beneficiary; 12. On going through the above provisions, it can be seen that only benefit or perquisite received in kind by any representative assessee or any payment made by the Representative Assessee in respect of any obligation which, but for such payment, would have been payable by the beneficiary is to be treated as income chargeable to tax. 13. In the case before u .....

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money or not but not money itself is not a perquisite within the meaing of sec. 2(24)(iv) of the Act. This view has been approved by the Hon ble Supreme Court in the case of CIT Vs. Mafatlal Gangabhai reported in 219 ITR 644. 14. Thus, it can be seen that only a benefit or perquisite in kind can be treated as income. Donations in the form of cash cannot be treated as a benefit or perquisite . Therefore as rightly pointed out by the learned counsel for the assessee, the donations received by the .....

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