9911796707
TMI Blog2022 (7) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act, 1961 (hereinafter the 'Act') vide order dated 14.12.2018. 2. The only issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by the AO towards the amount transferred to the society holding the same as application of income. For this, Revenue has raised following Ground No.2:- "2. The ld.CIT(A) erred in allowing the appeal of the assessee as the society and the AO i.e. the assessee are two different identities, having separate PAN and their income are assessee separately. The amount transferred to the society was only application of money and not a genuine expenditure in the assessee." 3. Brief facts are that the AO on perusal of income and expenditure account submitted by the assessee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before CIT(A). 4. The CIT(A) after considering the submissions of the assessee and considering the Hon'ble Supreme Court decision in the CIT vs. Sitaldas Tirathdas, [1961] 41 ITR 367, allowed the claim of assessee by observing in para 8.3 as under:- "8.3 As relied on by the appellant, SC in its decision in 41 ITR 367 has held that the receipt is not taxable when it is collected on behalf of another person and passed on to the other person. There is no actual income in the hands of the appellant. The appellant was clearly under obligation to pass on the surplus as per the byelaws and the same was done. The entity was constituted for the limited purpose of organizing the conference on behalf the central office (HQ) and the state chapter t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gical Society of India (CSI), which is a registered society under the Societies Registration Act XXI of 1961 of West Bengal having its registered office at Kolkatta. The CSI is a premier institution in India providing immense services to the advancement of scientific knowledge and research in relation to cardiovascular system in all its aspect to improve, prevent and treat all types of cardiovascular diseases. The assessee before us filed copies of registration certificate and constitution documents. The assessee every year carried out the annual conference which is major event at various places all over India through its branches and by establishing separate committee for conducting such annual conference. To conduct this 67th Annual Confe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lkata and Chennai chapter of CSI are respectively assessed to taxed and they have declared these contributions by assessee AOP in their respective return of income and the assessee filed the complete particulars of assessment which reads as under:- S. No. Particulars Remarks 1. Cardiological Society of India HOKolkatta P-60, CIT road, Scheme VII-M, Kankurgachi, Kolkatta - 700054 Assessed to income tax in PANAAATC4824A with ITO, Exemption 1(1), Kolkatta. 2. Cardiological Society of India, Chennai Chapter CSI library, First Floor, Dept. of Cardiology, Rajiv Gandhi Govt. General Hospital, Chennai -600 003. Assessed to income tax in PANAAAAC4679C with ITO, Exemption Ward 2, Chennai. These were filed before AO also. 5.2 We noted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble; but where the income is required to be applied to discharge an obligation after such income reaches the assessee, the same consequence, in law, does not follow. It is the first kind of payment which can truly be excused and not the second. The second payment is merely an obligation to pay another a portion of one's own income, which has been received and is since applied. The first is a case in which the income never reaches the assessee, who even if he were to collect it, does so, not as part of his income, but for and on behalf of the person to whom it is payable. In our opinion, the present case is one in which the wife and children of the assessee who continued to be members of the family received a portion of the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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