Director of Income-tax (Exemption) v. J. D. Tyler School Society
[Citation -2015-LL-0408-74]

Citation 2015-LL-0408-74
Appellant Name Director of Income-tax (Exemption)
Respondent Name J. D. Tyler School Society
Court HIGH COURT OF DELHI AT NEW DELHI
Relevant Act Income-tax
Date of Order 08/04/2015
Judgment View Judgment
Keyword Tags capital or revenue receipt • benefit of exemption • question of law • donation
Bot Summary: The questions sought to be urged by the revenue is with regard to the treatment of the sum of 66,25,049/- which was deleted pursuant to the concurrent orders of the CIT(Appeals) and the ITAT. It is argued that the amount received as development fund by the assessee and directly taken to the balance as liability was impermissible and that the only method given that it is a chargeable organization receiving the benefit of exemption under the provisions of Income Tax Act was to receive donation to its corpus and thereafter apply it towards expenditure. At the outset this Court noticed that there is neutrality as to the effect of the amount in question for the AY 2008- 09. It is argued on behalf of the revenue that there is no concept of capital or revenue receipt for a trust which has to account for the amounts received as directly in view of Section 12(1) since all amounts are to be treated as income of the trust except those which are directly credited to the corpus. We are informed that in the succeeding years 2009-10 onwards the revenue has consistently brought to tax similar amounts. In these circumstances we leave the question of law open to be urged later in an appropriate case. As far as the other issue with respect to claim for depreciation of 15,94,466/- - allowed in favour of the assessee is concerned, the Court noticed that the question of law sought to be urged stands covered in the assessee s favour in Director of Income Tax V. Indraprasth Cancer Society dated 18.11.2014 in ITA No.240/2014.


IN HIGH COURT OF DELHI AT NEW DELHI ITA 424/2014 DIRECTOR OF INCOME (EXEMPTION).Appellant Through Mr. Kamal Sawhney, sr. standing counsel with Mr. Shekhar Garg, Mr. Mukul Mathur and Mr. Sanjay Kumar, jr. standing counsel versus MIS J.D. TYTLER SCHOOL SOCIETY.Respondent Through Mr. Prakash Kumar and Mr. Manish Kumar, Advs. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.K.GAUBA ORDER % 08.04.2015 1. questions sought to be urged by revenue is with regard to treatment of sum of 66,25,049/- which was deleted pursuant to concurrent orders of CIT(Appeals) and ITAT. It is argued that amount received as development fund by assessee and directly taken to balance as liability was impermissible and that only method given that it is chargeable organization receiving benefit of exemption under provisions of Income Tax Act was to receive donation to its corpus and thereafter apply it towards expenditure. At outset this Court noticed that there is neutrality as to effect of amount in question for AY 2008- 09. 2. It is argued on behalf of revenue that there is no concept of capital or revenue receipt for trust which has to account for amounts received as directly in view of Section 12(1) since all amounts are to be treated as income of trust except those which are directly credited to corpus. 3. We are informed that in succeeding years 2009-10 onwards revenue has consistently brought to tax similar amounts. In these circumstances we leave question of law open to be urged later in appropriate case. 4. As far as other issue with respect to claim for depreciation of 15,94,466/- - allowed in favour of assessee is concerned, Court noticed that question of law sought to be urged stands covered in assessee s favour in Director of Income Tax V. Indraprasth Cancer Society dated 18.11.2014 in ITA No.240/2014. 5. appeal is accordingly disposed of. S. RAVINDRA BHAT, J R.K.GAUBA, J APRIL 08, 2015 vld Director of Income-tax (Exemption) v. J. D. Tyler School Society
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