2011 (10) TMI 79

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....ted 30.7.2010 passed by Income Appellate Tribunal, Chandigarh (for short the 'Tribunal') whereby the appeal filed by the revenue was dismissed and the cross appeal filed by he assessee was allowed. The assessee is a society formed by Government of Haryana as per the regulations of Government of India for implementation and monitoring of Poverty Eradication Programmes in the urban area of Haryana. ....

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....e scheme money to be utilized in the next financial year. The Assessing Officer found that the percentage of income used for charitable purposes is less than 85% and that the essential conditions of Section 11 and 12 of the Act have not been fulfilled by the assessee. Thus, the Assessing Officer finalized the assessment. In appeal, the Commissioner of Income Tax (Appeals), Panchkula granted rel....

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..... It has no discretion to utilize the amount as per own requirements. It also found that in case of non-utilization at the close of the Scheme, the funds are to be refunded along with interest to the Government of India and State Governments. The grants received by the assessee do not belong to the assessee-Society. The grants do not form corpus of the asseesee nor is it income of the assessee und....

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....ven if the amount is not disbursed due to imposition of model code of conduct by the Election Commission, the surplus at the end of the year cannot be included as income under Sections 11 and 12 of the Act. If the grant is not includable as income the surplus at the end of the year remaining unspent is not of any relevance. In respect of the Bank interest, the Tribunal found that the assessee has ....