Of Income Tax v. Trustees Of Kasturba Scindia

Income Tax Appeal No.221/2017 (Principal Commissioner of Income Tax, Ujjain VersusM/s. Ujjain Shikshan Avam Shodh Samiti)Indore, Dated 28.11.2017Ms. Veena Mandlik, learned counsel for the appellant – department. Heard on the question of admission. O R D E R This income tax appeal under Section 260-A of the Income Tax Act, 1961 has been filed against order dated 30.05.2017 passed by the Income Tax Appellate Tribunal, Indore Bench, Indore in ITA No.22/Indore/2015, whereby the learned Appellate Tribunal affirmed order dated 30.10.2014 passed by the Commissioner of Income Tax (Appeal), Ujjain in First Appeal No.U-551/2011-12 and dismissed the appeal of the department. 2.It is not in dispute that the respondent – assessee received Rs.40,00,000/- as Corpus Donation for Building Construction, which was for specific purpose; hence, the same cannot be treated as part of Income Tax even though the assessee is not registered under Section 12-A of the Income Tax Act, 1961. This view has been taken by the learned Appellate Authority as well as by the learned Appellate Tribunal on the basis of decision of Bombay High Court in the case of Commissioner of Income Taxv. Trustees of Pithawe RC Kasturba Scindia Commission Trust reported in . (1991) 189 ITR 5 (Bombay) 3.In the present case, the Assessing Officer on evidence has accepted the fact that Rs.40,00,000/- (rupess forty lakhs) was received by the assessee as Corpus Donation for Building Construction, which was for specific purpose, in view of the law laid down by the Bombay High Court in the case of Commissioner of Income Tax v. Trustees of Kasturba Scindia Commission Trust(supra) and held that the amount being in the nature of Corpus Fund, is not taxable under the Income Tax Act, 1961 being in the nature of Capital Receipt, and therefore, the addition made by the Assessing Officer towards taxable income of the assessee is not sustainable. 4.On due consideration of the aforesaid, so also the reasoning assigned by the learned Appellate Tribunal and the law on the subject, we are of the view that no substantial question of law arises in this appeal. 5.Income Tax Appeal No.221/2017 has no merit and is accordingly dismissed. (P.K. Jaiswal) Judge (Virender Singh) Judge