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2010 (1) TMI 699 - AT - Income TaxReceipt of donation - voluntary donation or towards corpus - for construction of the building - Held that:- The manner in which such donations have been collected by the assessee is not disputed by the AO. The only dispute is that the assessee could not provide the names and addresses of individual donors who have contributed towards 'building construction fund'. Quite clearly, the donations are being collected from the devotees at large and the insistence of the AO of production of individual names and addresses is not justified. Moreover, the bona fides of such practice being carried out by the assessee, either in the past or during the year under consideration is not doubted. Therefore, in our considered opinion, having regard to facts and circumstances of the case, the donations to the extent of Rs. 40,55,480 collected by the assessee can be considered as carrying specific directions for being used for construction of building. Ostensibly, the devotees putting money in the donation box did so in the face of the appeal by the society that the amounts collected would be used for construction of building. In such circumstances, the plea of the assessee that it should be taken as donation towards the corpus is reasonable. - Decided in favor of assessee.
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