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2011 (7) TMI 580 - AT - Income TaxCollection of money over and above the fee prescribed - whether amount to collection of capitation fee or not - Reopening of assessment - Held that:- The very fact that the Assessing Officer has granted exemption to the assessee under section 11 clearly brings out the fact that he has treated the assessee society as a charitable institution and he was further convinced that the assessee society has not indulged in the activity of collecting "Capitation fee" - It is pertinent to note that the Assessing Officer did not give any reason to support his action. "Voluntary contributions" received by a charitable trust/institution - "income from property held for charitable or religious purposes" - Held that:- The impugned donations received by the assessee have been given with a specific direction that they shall form part of the "Corpus" of the institution. The assessee society has furnished the names and addresses of the donors along with the photocopy of the receipts given by it also the confirmation letters from some of the donors to the effect that they have given the impugned corpus donations for the development of the institution. As the AO has failed to examine all these evidences to prove the point that the impugned donations were not given voluntarily & did not examine the concerned donors also in that regard the view entertained by the Assessing Officer becomes base less. Hence the said voluntary contributions shall remain as "Corpus donations" exempt under section 11(1)(d) and the Assessing Officer is not correct in changing the character of Corpus donations as ordinary receipts in the facts and circumstances of the case - in favour of assessee.
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