Sen, J. - (1.) This reference relates to the assessments of Messrs. Thakurdas Sureka Charity Fund, the assessee, in the assessment years 1962-63, 1963-64, 1964-65 and 1965-66, the relevant accounting years ending diwali, R.N. 2018, 2019-20, 2020-21 and 2021-22. The controversy relates to contributions received by the assessee from Messrs. Thakurdas Sureka Charity Trust Fund (1941), hereinafter referred to as the Trust Fund. The admitted position is that the donor, that is the Trust Fund derived its income from property held for charitable or religious purpose to which Section 11 of the I.T. Act, 1961, as it stood at the relevant time applied. It was found that the contributions received by the assessee as aforesaid were in the nature of voluntary contributions from the Trust Fund which were accumulated in the hands of the assessee and, therefore, became liable to be taxed under Section 12(2) of the I.T. Act, 1961, as it stood at the relevant time.
(2.) In the relevant assessment years, the ITO treated the amounts of the said contributions to the assessee as its income and giving relief for 25% of the total receipts or Rs. 10,000, whichever was higher, tax was assessed accordingly.
(3.) The assessee, being aggrieved, preferred appeals before the AAC in respect of all the said assessment years. The additions were substantially confirmed. The assessee preferred further appeals before the Income-tax Appellate Tribunal. The only point agitated before the Tribunal was that the amounts received by the assessee from the Trust Fund in the said assessment years should not be included in the assessments. The Tribunal found that under an indenture dated the June 30, 1960, executed by and between the assessee and the said Trust Fund it was, inter alia, agreed that the assessee would receive a sum of Rs. 1,000 per month from the Trust Fund from November, 1960, and would spend the said amount towards the expenses of daily seba puja and bhog of "Satya Narain Tulsi Manas Mandir at Varanashi". The Tribunal found that the Trust Fund and the assessee were both charitable and religious institutions and that the said Trust Fund was entitled to claim benefit under Section 11 of the I.T. Act, 1961, in respect of contributions made to the assessee, but under Section 12(2) of the Act such contributions had to be deemed income derived from property in the hands of the assessee, as it was a trust or a charitable or religious institution. Such amounts were taxable unless entitled to exemption under the said Section 11 of the Act. The Tribunal found that the assessee was not entitled to claim any further relief from Section 11 and, accordingly, dismissed the appeals.;