COMMISSIONER OF INCOME TAX Vs. SAKAL RELIEF FUND

JUDGEMENT

(1.) This Appeal under Sec. 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 25th March, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 25th March, 2014 is in respect of Assessment Years 2000-01 and 2001-02.

(2.) The Revenue urges the following reframed question of law for our consideration:

(3.) The Respondent-Assessee is a charitable trust, registered under Sec. 12A of the Act. For the subject Assessment Years, the Respondent-Assessee had not filed any return of income as, according to it, it had no income. This in view of the fact that the donations received by it, were specifically earmarked for use towards Kargil War Relief Fund and Orissa Relief Fund. Therefore, as the Respondent-Assessee did not have any discretion to utilize the aforesaid donations, the same were directly taken to the Balance Sheet under the head 'Earmarked Fund' and not routed through its Income & Expenditure Account. Consequently, there was no occasion for the Respondent-Assessee to seek accumulation of such income which is not utilized as provided under Sec. 11(2) of the Act.