2008 (7) TMI 984

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....3. We have heard the rival submissions. Indisputably reopening was made beyond four years. The assesses is a company incorporated under section 25 of the Companies Act, 1956. it was formed primarily for providing medical aid and other facilities for the employees of Pentafour group of companies. The other facilities include education, sports and provision of medical aid for the retired employees. 4. The assessee derives income by investing corpus funds in shares and securities. The assessments were completed under section 143(3) of the Act. It was made clear that the assessee is not a charitable trust. No exemption was claimed under section 11 of the Act. As such there is no requirement for getting registration done under section 12A of th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... such the assessee was under no obligation to make registration under section 12A. In view of this it is not correct to apply the prescription of section 11(1)(d). Section 11 can only be applied when property is held for charitable or religious purposes and the assessee avails the advantage of exemption contemplated for charitable trust. In the present case the matter needs to be examined with reference to the scheme of the Act as regards the taxability of corpus donation. 6. As regards the nature of income there is no dispute. The assessee did receive donation towards corpus funds. Whether such receipts could be construed to be income? The term 'income' is a dark cat in the bag of the income-tax code. There is no exhaustive defini....