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1 - 4 of 4 (0.21 seconds)Commissioner Of Income Tax, (Central) ... vs Bijli Cotton Mills (P) Ltd., Hathras., ... on 7 November, 1978
5.1 The decision of the Hon'ble Supreme Court in the case of Bijli Cotton Mills (supra) will not help the case of the assessee. In the said case, Dharmada paid by the customers is over and above the price of the yarn sold by the assessee to the customers. Hon'ble Supreme Court has given a dear finding that the payments were in fact for charity right from the inception and as per the tradition and practice followed in the line of trade as carried on by that assessee. Dharmada amount collected was handed over to the trust and were utilized for the objects of the trust. In the present case, the payment by the students is by way of fees alone and there is no voluntary act of payment of donation to the trust but something forced upon the students. This cannot be treated as diversion of income, but merely application of income, and hence rightly taxable in the hands of the assessee. The learned CIT (A), while considering the appeal, has covered each and every argument of the assessee and has met all of them in proper perspective. We accordingly confirm the addition.
Section 12A in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
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