2021 (2) TMI 326

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....ollowing substantive grounds in the instant appeal: "1. The Order of the Learned Commissioner of Income Tax (Appeals), Tirupati, is erroneous and is not based on facts and circumstances of the case. 2. The Ld. Commissioner of Income Tax (Appeals), Tirupati erred in upholding the statement of the Ld. AO that corpus fund donations were utilised for day-to-day expenses. The Ld. CIT(Appeals) erred in not examining the financial picture put out by the Income and Expenditure statement and Balance Sheet of the appellant for the assessment year under appeal. 3. The Ld. Commissioner of Income Tax (Appeals), Tirupati erred in upholding the stand of the Ld. AO that the treatment of Corpus donations under the AP Charitable an....

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....eipts were not offered as income, instead they are taken directly to the Balance Sheet which are added to the corpus fund. However, the AO gave a specific finding that the corpus fund was not utilised for a specific purpose, and entire money was utilised for day to day expenses of the assessee-devasthanam. The AR of the appellant did not dispute with any evidence as to what was the purpose for corpus fund and also how the money was utilised. The AR of the appellant did not dispute the findings of the AO that the corpus fund Was utilised for meeting day to day expenses of the assessee. The AR of the appellant also did not give details as to how many types of Hundies were maintained, i.e. the Hundies for corpus and also Hundies for general pu....

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....orted in 274 ITR 562 is also not tenable. Looking to the facts and circumstances of the case, and legal position on the issue, I confirm the action of the AO in treating the Hundi receipts and donations as regular income". 4. Both parties reiterated their respective stands against and in support of the lower authorities' action treating the assessee's foregoing sum(s) as regular income. The clinching fact that has come to our notice during the course of hearing is that this assessee is governed by the provisions of Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987. This 'Act' received the assent of the President on 15-05-1987. Chapter-VIII Section 65 Explanation (1)(g) thereof stipulates ....