TMI Blog2018 (10) TMI 730X X X X Extracts X X X X X X X X Extracts X X X X ..... e from other sources - Held that:- the payment of professional and legal fees were with regard to some disputes pertaining to the properties of the assessee trust, which has got absolutely no bearing on the earning of interest income on deposits. - Claim not allowed - Decided in favor of revenue. - I.T.A No. 2007/Kol/2016 - - - Dated:- 5-10-2018 - Shri A.T. Varkey, JM And Shri M.Balaganesh, AM For The Appellant : Shri Sandeep Lakra, Addl. CIT Sr. DR For The Respondent : Shri Soumitra Choudhury, Advocate And Shri Joydeep Chakraborty, Advocate ORDER Per M.Balaganesh, AM 1. This appeal by the Revenue arises out of the order of the Learned Commissioner of Income Tax(Appeals)-12, Kolkata [in short the ld CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... religious and charitable purposes. As the income from all the properties were extremely low, the shebaits of the trust filed a petition before the Hon ble Calcutta High Court to sell the property leased out to Calcutta Jute Manufacturing Limited and accordingly obtained permission from the Hon ble Calcutta High Court to sell the property for ₹ 50 Crores. Accordingly the same was sold and the income out of it was utilized for the purpose of worship of Durga Mata and charity as per the direction of the Trust Deed and Codicil. 3.1. The only source of income of the trust was interest from the deposit of the sale proceeds and the major expenses incurred were puja expenses and donation as per the direction of the settlers. For the Asst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the status of Association of Persons (AOP in short) .He observed that since the income is assessed under the head income from other sources , the expenditures that would become eligible for deduction would have to be examined in the touchstone of provisions of section 57 of the Act viz the expenditures incurred for the purpose of earning such income from other sources. Accordingly, the ld AO observed that expenses like professional fees, legal expenses , donation and charity are not allowable and since AOP was established from time immemorial for the purpose of Puja of Sree Sree Durga Mata Jue and for the maintenance of the property, the expenditure for repairs and maintenance for ₹ 12,49,778/- ; puja expenses for ₹ 2,02,655 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er book filed before us vide pages 52 to 80 of paper book, we find that Shri Arvindo Institute of Applied Scientific Research was set up on 25.10.1991 as a voluntary non profit charitable trust for undertaking research and development work in specialized area of medical sciences, medical health care support to the poor and needy besides supporting other development activities relating to health, education and public awareness. It had undertaken a project for awareness and education of Thallesaemia and a sanction u/s 35(1)(ii) of the Act is obtained by it vide Gazette Notification No. 1843 E File No. CBDT / 203/107/2009-10 dated 10.4.2009. They are registered with income tax department u/s 12A of the Act and having exemption u/s 80G(5) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interference by us. Accordingly, the Ground Nos. 1 2 raised by the revenue are dismissed. 8. With regard to eligibility to claim deduction towards expenses on account of professional and legal fees in the sum of ₹ 29,53,889/- , we find that the interest income on deposits is assessed to tax under the head income from other sources and accordingly only the expenditure eligible for deduction u/s 57 of the Act could be allowed as deduction. We find that the payment of professional and legal fees were with regard to some disputes pertaining to the properties of the assessee trust, which has got absolutely no bearing on the earning of interest income on deposits. Hence we hold that the same are not incurred for the purpose of earni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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