2023 (12) TMI 1513

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.... was framed by the Income-tax Officer, Exemption Ward, Madurai for the assessment year 2017-18 dated 24.11.2019 u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). 2. The only issue in this appeal of assessee, argued by the Ld. Counsel for the assessee, is that the CIT(A) erred in confirming the action of the Assessing Officer in assessing the interest income at Rs. 94,66,848/-, without appreciating that the interest income is not voluntary contribution and liability is attached over the interest income. For this assessee has raised various grounds 10 in numbers, which are argumentative, exhaustive and factual and hence no need to be reproduced. 3. Brief facts of the case are that, the assessee is a charita....

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....tion 11(1)(d) of the Act. Hence, he treated this interest as revenue receipts and added to the returned income of the assessee and made addition. Aggrieved, assessee preferred an appeal before the CIT(A). 4. The CIT(A) after going through the submissions of the assessee, upheld the action of the Assessing Officer by observing in Para 6.3 which reads as under: "6.3. All the facts of the case, Grounds of appeal, statement of facts, online submissions of the appellant and the case laws cited and the assessment order are considered. The appellant has filed online submission that the St. Joseph's Development Trust's (SJDT's) transactions differ when compared to the decision of the Hon'ble High court in the case CIT Vs....

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....said interest of Rs.94,39,503/- must be included in the income and expenditure account and gross receipts. I find no reason to interfere with the AO's order on the issue. Appeal on Ground Nos. 1 to 1 O on Section 11(1)(d) is dismissed." Aggrieved, assessee is in appeal before us. 5. We have heard rival contentions and gone through facts and circumstances of this case. Before us also Ld. Counsel for the assessee argued that, funds were received from donors were already distributed to the SHG in earlier years and received back on the condition that it will be returning with the interest accrued and therefore, it is in the nature of loan and not voluntary contribution as held by the Assessing Officer. She argued that the receipt from....