TaxTMI 
TaxTMI 
2019 (3) TMI 1264
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..... Subsequently a notice under section 148 was issued and assessment was completed under section 143(3) r.w.s. 147 of the Act on 28/12/2006. In the assessment order, the Assessing Officer has noted that during the previous year relevant to the assessment year, the assessee has received the following cheques in respect of which, he has stated that they are received with a specific purpose and transferred to society's account:- Sl.No. Date of credit in SBI Dollars Amount Rs. Date Draft No. 1 02/07/2002 2032 97,836 18/06/2002 2773 2 02/07/2002 1600 70,971 18/06/2002 2774 3 17/02/2002 -- 75,468 -- The assessee has furnished copies of first two cheques. On those cheques the purpose was mentioned as 'reimbursement for school expenses and building fund' respectively. Further, the assessee could not furnish copy of the third cheque and purpose for which it was issued. The assessee has furnished the books of accounts maintained, wherein the assessee simply stated that these amounts are paid to the society by cash only, but not bycheque or draft. The assessee has not furnished any proof in support that....
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....s assessee's income and submitted that addition may be deleted. 6. On the other hand, ld. Departmental Representative has strongly supported the orders of the authorities below. 7. We have heard both the parties, perused the material available on record and gone through orders of the authorities below. 8. The assessee is a Pastor and he has received an amount of Rs. 2,50,275/-. When the Assessing Officer has asked the assessee about the purpose for which the amounts are received and utilization of the funds, the assessee has submitted that he has received funds from abroad for the purpose of construction of church and building and submitted that the amounts received has been transferred to Ramadasupeta Area Church of Christ Welfare Ministries. The Assessing Officer has asked the details of the transfer of funds and utilization of funds. The assessee has submitted that he has withdrawn the money from bank account and transferred to the society, however, assessee is not established a fact that the funds received by the assessee have been transferred to the society-Ramadasupeta Area Church of Christ Welfare Ministries. Therefore, the Assessing Officer has treated the entire a....
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....turns were filed since there is no taxable income. But it is maintaining books of accounts. For your ready reference an acknowledgement bearing No.024564, dt. 23.03.2007 in support of Income-tax return flied for the A. Y. 2004-05 is enclosed herewith. While sending the fund, the said donor namely "High Land Heights Church of Christ" specifies the purpose on the face of the DD for which it is being sent. According to those directions, the assessee will utilize those funds. For your ready reference photo copies of DD are enclosed herewith. Apart from that an "e-mail" letter from the said donor represented by its member is also enclosed herewith. This letter contained the fact of the case and purpose of the remittances for which they are being sent. As per this letter, it may be noted that the assessee is not receiving/accepting these amounts/or his own sake and he will not get any ownership on these funds. Further, all funds are sent voluntarily and not as a liability. The assessee cannot demand them/claim for a single paise from the donors. They are being sent on humanitarian grounds to do certain welfare activities here. Since the assessee shown his genuineness and g....
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....he government. 5. Every receipt in the hands of the recipient is not his income. The nature of the transaction, circumstances in existence, trade relations, and other relevant aspects will determine the nature of the receipt. 6. In CIT V Bijli Cotton Mills P Ltd(] 979) 116 1T1? 60('SC), it is clarified that the amounts which were received and held by the assessee under an obligation to spend the same for charitable purpose from the inception, then these receipts,' cannot he regarded as forming any income of the assessee. Similarly in the case Anup Eng. Ltd Vs.CIT (2001) 247 ITR 457(GUJ): It was held that income accrues only when the assessee gets right to receive the same. 7. Since the amounts received by the assessee as a mediator none of the Provisions of Sec.2(24) of the Income Tax Act 1961 are applicable. 8. The assessee had transferred the funds to a charitable institution established and registered in India according to the provisions of Societies Registration Act, in order to fulfill the purpose. This is because funds sent by the said High Land Heights Church of Christ are intended to construct church buildings, perform certain welfare activities etc, but....
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....nd observed that as admitted by the assessee himself vide his letters, the amount of Rs. 5,50,259/- received is not a gift, as against the same was written in thecapital account of the assessee. Therefore, there is no need of treating the same as gift at all. During the previous year relevant to the assessment year, the assessee has received the following cheques in respect of which he has stated that they are received with a specific purpose and transferred to the society's account:- 07/05/2003 Rs. 1,63,989/- 14/10/2003 Rs. 3,45,775/- 23/01/2004 Rs. 25,000/- 23/01/2004 Rs. 15,495/- Total Rs. 5,50,259/- 11. The assessee has furnished copies of first two cheques. On those cheques the purpose was mentioned as 'building second floor' and 'personal support', the assessee could not furnish copy of the third and fourth cheques and purpose for which the same were issued. The assessee has furnished the books of account maintained in his individual capacity, wherein the assessee simply stated that these amounts were paid to the society on a single day i.e on 01/02/2004, by cash only, but not by cheque or draft. The assessee has not maintained any separate ba....