Money or payment received in trust and in fiduciary capacity, should not be treated as income

CIT Vs Society for Indian Automobile Manufactures (Delhi High Court) Ministry had sanctioned Rs.1,474.10 lacs ( including cost of land) for setting up Model Inspection & Certification Centres. The respondent/assessee was to execute this project for and on behalf of the Ministry. The amount received was in form of a financial sanction and not a grant. The funds though routed and kept in a separate bank account in the name of the respondent-assessee did not belong to the respondent-assessee. They belonged to the Ministry. Separate books of accounts, ledger, bank book etc. were kept. The resp...