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2011 (1) TMI 1320 - AT - Income TaxExemption u/s 11 - corpus donation - voluntary contributions (whether corpus donations or general donations) received by a Charitable Trust is income as defined vide section 2(24)(iia) of the Act or not - corpus donations are exempt from tax u/s 11(1)(d) only if assessee is registered u/s 12A/12AA of the Act or not - receipt of money by the assessee in the status of AOP - applicability of provisions of Chapter IV. HELD THAT:- The Tribunal, in the assessee’s own case for assessment year 2003- 04, held that the amount received by the assessee trust from its settler, towards infrastructure fund, was not taxable in the hands of the assessee, despite the fact that the assessee trust was not registered u/s 12A of the Act in that year. The Hon’ble Delhi High Court, vide its order in BASANTI DEVI & SHRI CHAKHAN LAL GARG EDUCATION TRUST [2009 (9) TMI 978 - DELHI HIGH COURT] have dismissed the Department’s appeal against the aforesaid Tribunal order, by observing the CIT(A) as well as ITAT rightly concluded that the donations received towards corpus of the trust would be capital receipt and not revenue receipt chargeable to tax. The Department contends that the aforesaid High Court order is under challenge before the Hon’ble Supreme Court by way of a SLP filed by the Department. This, however, is not premise enough to allow the Department’s appeal, particularly when the High Court order has not been shown to have been stayed. Decided in favour of assessee. Respectfully following the High Court decision in the assessee’s own case for assessment year 2003-04, the grievance of the Department is rejected. The appeal filed by the Department is dismissed.
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