DIRECTOR OF INCOME TAX EXEMPTION LAXMI NAGAR NEW DELHI Vs. JAIPUR GOLDEN CHARITABLE CLINICAL LABORATORY TRUST

JUDGEMENT

(1.) PRESENT appeal has been filed under Section 260a of the Income Tax Act, 1961 ( for short as Act ) against the order dated 1st May, 2007 passed by Income tax Appellate Tribunal, Delhi Bench G (for short as Tribunal ) in ITA nos. 3649 and 3317/del/05 relevant for the assessment year 2001-02.

(2.) THE brief facts leading to dispute are that the Assessee is a charitable Trust registered under Section 12a (1) of the Act. It is running a hospital called Jaipur Golden Hospital at 2-Institutional Area, Rohini, New delhi. It filed its income tax return for the assessment year 2000-01 declaring nil income. In the course of assessment proceedings, it was noticed by the assessing Officer that Assessee had received donations from 61 consulting doctors who had opted to give donations of Rs. 10,000/- each under the terms and conditions. According to the terms and conditions, the Assessee was entitled to deduct 20% of the consulting charges and the balance amount to be paid to the consulting doctors. It further provided that if the consulting doctors paid donations of Rs. 10,000/- then they would be entitled to 85% of the consulting charges instead of 80%.

(3.) THE Assessing Officer was of the view that donations received were not as per provisions of Sections 11 and 12 of the Act and are forced contribution as per agreement executed between doctors and the Hospital authorities. Therefore, he treated the impugned donations of Rs. 6,10,000/- as Income from other Sources , applying the provisions of Section 56 to 59 of the Act.