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2012 (10) TMI 749 - AT - Income TaxExemption u/s 11 - corpus fund - donation received with direction - capitation fee - anonymous donations - Held that:- Capital receipts by way of development fund, contributions and donations could not be added as they were received with specific direction that they should be treated as corpus fund or development fund. Assessee in the instant case has not been able to prove that the contributions received by it are not in the nature of capitation fee collected from students/prospective students or their relatives in the guise of donations. - In the absence of any evidence filed by the assessee in that behalf the assessing officer treated the same as the income of the assessee and the CIT(A) too confirmed the addition made by the assessing officer in that behalf. - Matter remanded back to AO for fresh decision. Fee received included fee received in advance which is to be excluded before arriving at the amount of Rs. 1.00 crore. In these circumstances, we remit the issue to the file of the Assessing Officer to examine whether the fees received in advance has been included so as to arrive to the conclusion that the aggregate receipt is more than 1 crore and therefore the assessee is out of purview of section 10(23C)(iiiad). Nature of contributions - capital in nature - The income has to be computed in a commercial manner even in the case where exemption is denied and the capital receipts cannot be taken as income of the assessee in case the Assessing Officer is satisfied that the contributions are capital in nature. Incidentally, the Assessing Officer is required to verify the figure as donation received - all the three appeals of the assessee under consideration are treated as allowed for statistical purposes.
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