AI Drafter 
TaxTMI 
TaxTMI 
2016 (6) TMI 48
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....ons 147 and 250 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). 2. The Revenue has raised the following grounds : 2.1 The learned Commissioner of Income-tax (Appeals) erred in deleting the addition of Rs. 1,54,66,312 holding that the amount was expended wholly for charitable activities and in accordance with the purpose for which it was given by the donor ; 2.2 The learned Commissioner of Income-tax (Appeals) failed to observe that as per the agency agreement entered into between the asses see and the donor, M/s. Sri Narayani Charitable Foundation, Calgary, Canada (annexure "A"), the donation requires to be spend towards nine specific tasks and duties mentioned in schedule HA to the said agency agree....
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....urn of income on October 10, 2006, declaring nil income. The trust was constituted on November 6, 1995, and registered under section 12AA of the Act with the Director of Income-tax (Exemptions), Chennai, vide order in DIT(E) No. 2(310)98-99, dated December 21, 1999. Subsequently, the case was selected for scrutiny and assessment was completed under section 143(3) of the Act. Further, the Assessing Officer issued a notice under section 148 of the Act based on the information of Form FC-3 on foreign contributions as their FCRA provisions, foreign donation/contribution as directed should be utilised for specific purpose and specified activities. In compliance with the notice under section 148 of the Act, the learned authorised representative o....
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.... further issued a show-cause notice for application of foreign contribution towards creation of hospitals/school assets, and they are not covered under the specific direction of the donor, SNCF, Canada. As per the programmes mentioned in agreement 2, the welfare measures activities are carried on by the assessee-trust. The learned Assessing Officer based on the data of the Canadian resource agency website is of the opinion that the expenditure of activities incurred by the assessee are against the directions of SNCG Canada and assessed the difference as income and raised demand. Aggrieved by the order, the assessee filed an appeal with the Commissioner of Income-tax (Appeals). 4. In the appellate proceedings, the learned authorised repre....
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.... other hand, it is not disputed that all the funds were received only through proper banking channels and it is also proved that the said sum of Rs. 5,56,47,742 was not received during the year under appeal by the assessee." Aggrieved by the Commissioner of Income-tax (Appeals) order, the Revenue has assailed an appeal before the Tribunal. 5. Before us, the learned Departmental representative vehemently argued that the Commissioner of Income-tax (Appeals) has erred in deleting the addition as the amount was not utilised wholly and exclusively for charitable activities as per the directions of the donor. The amount has to be spent on nine specific tasks as per schedule "A" to the agreement and does not bear any date of agreement. The l....
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....i Narayani Siddar Peedam Charitable Trust, Tamil Nadu. So far as the issues on the agreement is concerned it is in accordance with terms and there are no defects as alleged by the Revenue. Further, the learned authorised representative demonstrated the significance of communication letter, assessment order and trust deed of the institution and the trust activities are conducted as per the conditions agreed with the Canadian donor. The learned authorised representative drew attention to the letter dated April 15, 2014, received from the Candian donor intimating directly to the Deputy Director (Exemptions), Chennai, with clarifications on the expenditure and scope of agency agreements at page 56 of paper book as under : "The general ....