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1 - 10 of 11 (0.30 seconds)Section 263 in The Income Tax Act, 1961 [Entire Act]
Section 10 in The Income Tax Act, 1961 [Entire Act]
Section 161 in The Income Tax Act, 1961 [Entire Act]
Section 13 in The Income Tax Act, 1961 [Entire Act]
Section 15 in The Income Tax Act, 1961 [Entire Act]
Bharat Sanchar Nigam Ltd. & Anr vs Union Of India & Ors on 2 March, 2006
9. The principle accepted by the Revenue for 10 earlier years and 4
subsequent years to the Assessment Years 2007-08 and 2008-09 was that
the entire expenditure is to be allowed against business income and no
expenditure is to be allocated to capital gains. Once this principle was
accepted and consistently applied and followed, the Revenue was bound
by it. Unless of course it wanted to change the practice without any
change in law or change in facts therein, the basis for the change in
practice should have been mentioned either in the assessment order or at
least pointed out to the Tribunal when it passed the impugned order. None
of this has happened. In fact, all have proceeded on the basis that there is
no change in the principle which has been consistently applied for the
earlier assessment years and also for the subsequent assessment years.
Therefore, the view of the Tribunal in allowing the respondent's appeal on
the principle of consistency cannot in the present facts be faulted with, as
it is in accord with the Apex Court decision in Bharat Sanchar Nigam
Ltd.'s case (supra).
The Income Tax Act, 1961
Trustees Of Kilachand Devchand ... vs Commissioner Of Income-Tax, Bombay ... on 26 March, 1987
In fact the Bombay High Court in the case of Trustees of Kilachand
Devchand Foundation v. CIT [1988] 172 ITR 382 /[1987] 32 Taxman
393 dealing with the said voluntary contribution made for a charitable
purpose, held that for being eligible for exemption, the donations must
be voluntary and of a capital nature. That cannot be applied to
charitable or religious purposes if the income thereof they must be so
applied. The contribution made expressly to the capital or corpus of
trust fall within the purview of sub-section (2) of Section 12. Therefore,
such contributions cannot be deemed to be the income derived from the
property for the purpose of Section 11 of the said Act and provisions
of Section 11 will not apply.
Sukhdeo Charity Estate vs Income-Tax Officer on 20 May, 1991
15. The Rajasthan High Court in the ease of Sukhdeo Charity Estate v.
ITO [1991] 192 ITR 615 (Raj.) dealing with such contributions held
that, the principles enunciated in various cases when applied to the
present case, leave no room for debate that the intention of the donor-
trust as well as donee-trust was to treat the money as capital to be spent
for Ladnu Water Supply Scheme. It is of no consequence whether the
amount had since been paid to the State Government or kept in the
account of the above-referred scheme by the assessee-trust. From
whatever angle it may be seen, the deposited amount cannot be said to
be income in the hands of the recipient-trust. Therefore, what ultimately
reveals that,-(i) the intention of the donor and (ii) how the recipient-
assessee treat the said income. If the intention of the donor is that the
amount/donation given is to be treated as capital and the income from
that capital has to be utilised for the charitable purposes, then the said
voluntary contribution is towards the part of the corpus of the trust.
Similarly, the assessee after receiving the amount, keeps the amount in
deposit and only utilise the income from the deposit to carry out the
charitable activities, then also the said amount would be a contribution
to the corpus of the trust and the nomenclature in which the amount is
kept in deposit is of no relevance as long as the contribution received
are kept in deposit as capital and only the income from the said capital
which is to be utilised for carrying on charitable and religions activities
of the institute/corpus of the trust, for which Section 11(i)(d) of the Act is
attracted and the said income is not liable for tax tinder the Act.