COMMISSIONER OF INCOME TAX Vs. DORIS S LUIZ

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Cochin Bench has referred the following questions viz.,

(2.) The Tribunal found that the admission was made by the assessee, only on the advice of her counsel and since the Department had not acted on the admission to its prejudice, it was open to the assessee to withdraw it. The Tribunal further observed that the surplus amount in the hands of the assessee was impressed with the character of trust money, and did not partake the nature of revenue receipts. So holding, the Tribunal quashed the order of the Inspecting Assistant Commissioner levying the penalties.

(3.) We think that the view held by the Tribunal is correct in the circumstances of the case. The stand taken by the assessee was that the money in question is in the nature of trust money, not impressed with the character of revenue receipt. On a careful analysis of the position, we are satisfied that the money was being held by the assessee in confidence for the Benefit of the students going for overseas training and employment and as such it is not a taxable item in her hands.