Delhi Building and Others Construction Workers Welfare Board Vs ACIT (ITAT Delhi)
ITAT Delhi held that cess fees received by the board is income derived from property held under trust and is thus taxable and the same cannot be treated as capital receipt.
Facts- The assessee is a society registered u/s. 12A of the Act dated 23.03.2009. It was found that the assessee had transferred cess fees from its balance sheet to the income and expenditure account during the year of Rs. 191,61,53,808/-. In response of the show cause issued to the assessee it was replied that the cess fees received by the board is capital receipt which is used for specific purposes i.e for the welfare of the construction worker as per Section 60 of Building and Other Construction Works, Act 1996. The same has shown in the balance sheet as a capital receipt for specific purpose. It was held that the said amount has to be taken to the income and expenditure account and 80% of the said amount to be utilized in the year and thus added to the total income of the assessee by AO.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
