TMI Blog2019 (3) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... ds received by the assessee have been transferred to the society for the purpose for which the funds are received. We find that the assessee failed to discharge the burden casted upon him to show that he has transferred the funds from his personal account to the society. His explanation is that on 01/02/2004 the entire amount was withdrawn and handed-over to the society for the purpose for which it is received. There is nothing available on record what is the work carried by the society and what is the expenditure incurred - Entire transaction is not a genuine transaction. Therefore, we find no infirmity in the order passed by the ld. CIT(A). Thus, this appeal filed by the assessee is dismissed. - ITA Nos. 59 & 60/VIZ/2018 - - - Dated:- 22-3-2019 - Shri V. Durga Rao, Hon ble Judicial Member And Shri D.S. Sunder Singh, Hon ble Accountant Member For the Assessee : Shri C. Subrahmanyam FCA. For the Department : Smt. Suman Malik Sr.DR ORDER PER V. DURGA RAO, JUDICIAL MEMBER These appeals by the assessee are directed against the separate orders of Commissioner of Income Tax (Appeals), Tirupati, both dated 29/12/2017 for the Assessment Years 2003-04 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee from abroad cannot be accepted as funds transferred to the society. Therefore, the said amount is treated as assessee s professional income and added to the total income of the assessee. 3. On appeal, ld. CIT(A) confirmed the order of the Assessing Officer by observing as under:-- 6. I have considered the findings of the AO in the order of assessment, remand report and arguments made by the AR of the appellant carefully. The claim of the appellant was that the donation received from abroad was meant for construction of the Church buildings and to purchase assets for charitable purposes, and same requires to be exempted from taxation. Assessee is a pastor doing preaching activities and also receiving certain money and amount of ₹ 1,37,072/- was declared as professional income. However, the appellant did not declare balance amount of ₹ 2,50,275/- received as professional income only on the ground that this part of money was spent for religious purposes. First of all, there is no evidence of spending money for charitable purpose. Mere cash withdrawal of money from bank account of the appellant would not establish for spending of money towards religio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been transferred to the society for the purpose of construction of the building and maintenance of church. Therefore, we find that the assessee failed to discharge the burden casted upon him to show that the funds received from abroad to his individual savings account and subsequently by withdrawing the amount, the same has been transferred to the society. Therefore, we are of the opinion that the Assessing Officer as well as ld. CIT(A) rightly made the addition. We find no infirmity in the order of the ld. CIT(A). Thus, this appeal filed by the assessee is dismissed. ITA No. 60/VIZ/2018 9. The only ground raised by the assessee is in respect of addition of ₹ 5,50,259/-. In the assessment order the Assessing Officer has noted that on perusal of the capital account filed by the assessee, it was noticed that the assessee has claimed receipt of gifts from abroad to the tune of ₹ 5,50,259/-. When the assessee was asked vide order sheet notings dated 23/11/2009 to explain the nature of the receipt along with necessary supporting evidences, the assessee has submitted a reply vide his letter dated 02/12/2009. The contents of the letter are reproduced hereunder:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in order to satisfy themselves that the funds are properly being utilized. It is being submitted to present the facts of the case before you and to state that all the remittances of funds from abroad are not belonging to the assessee. Considering the above facts, it is requested not to treat the gift amounts as income in their hands of the assessee Subsequently the assesses has submitted one more letter on 02-12-2009, furnishing further information, contents of the letter are reproduced hereunder. According to the opinion of the assessee as expressed below and provisions of Income Tax Act, 1961 and under the following circumstances the amounts received for specific purpose from abroad i.e. from High Land Heights Church of Christ by the assessee is not taxable as income in his hands. 1. He received these funds with a direction from the said High Land Heights Church of Christ through Mr. Harry P Anderson. 2. There is no financial relation between the assessee and the said High Land Heights Church of Christ who send the money for a specific purpose. In other words they are not liable to each other in either trading or otherwise. 3. The assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee had received these .funds as Trustee/guardian/as an agent to perform a particular activity directed by the High LandHeights Church of Christ but not as an owner of funds. 9. Mere holding an amount, by accounted for in the books of account, does not become the taxable income of the person as long as the source of the amount and its nature can be explained with regard to the amount and its nature can be explained with regard to the classification of the transaction to which that amount belongs. In other words if the amount received is in the capital nature it cannot be treated as revenue receipt. Similarly, if it is in the nature of loan/advance/otherwise it cannot be taxable in the hands of the person who accounted for in his books. The intention of both parties (receiver and giver) is the main criteria to decide the taxable nature of the transaction. 10. In the present case the assessee had not received the amount for his own purpose. Similarly High Land Heights Church of Christ did not send the amount/or the benefit of the assessee. Merely by recording the receipts in his books, of accounts the assessee cannot become the owner of the funds received In the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question, which were alleged to be received for a specific purpose. He has deposited the cheques received from abroad in his regular savings bank accountonly. As per assessee s version, he has withdrawn the amounts from bank and paid the same to the society Ramdaspet Church of Christ for the purpose of construction of church. As the assessee has not produced any documentary evidence for the same nor does he produce any account statements from the society i.e. Ramdaspet Church of Christ, evidencing these transactions, the genuineness of the transaction is not verifiable. Further, he could not prove that the amounts are received by the society as he has not maintained any books of accounts for the society; thereby he has failed to establish the transaction of transfer of funds to the society. Accordingly, the Assessing Officer has treated the entire amount of ₹ 5,50,259/- as professional income of the assessee and added the same to the total income of the assessee. 12. On appeal, ld. CIT(A) confirmed the order of the Assessing Officer. 13. Ld. counsel for the assessee has submitted that the assessee has received the amounts for specific purpose, therefore, these amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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