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2012 (12) TMI 58 - AT - Income TaxCorpus donation – alleged that corpus donations were utilized for the objects of the Trust and, therefore, to that extent the assessee was not entitled to exemption under section 11 of the Act – Held that:- In the light of the confirmation letters of the donors, donations in question were towards corpus funds - addition deleted - there was utilization of funds for the objects of the Trust the action of the AO in taxing the donations received was not proper – In favor of assessee Whether expenditure on cultural activities like shows rath yatra, art festivals etc. are application of income in accordance with the objects of the trust – alleged that donations were made to institutions which were not related with the cultural activities or for promotion and advancement of culture – Held that:- Same are various donations given to organizations which have organized events for celebration of festivals and for arts festivals etc. - this is nothing but an expenditure for promotion of arts, culture and literature. Hence to the extent of the details produced for Rs.4,78,0751- Officer has erred in coming to the conclusion that this is not an application of income towards its objectives. Hence to this extent the addition is deleted and the ground is partly allowed Addition on account of donation – alleged that assessee has invested donations in a manner contrary to sec.11(5) thereby violating the provisions of sec.11(5) - Held that:- Donations have been received as corpus donation towards the end of the previous year. They were invested in the manner prescribed in the subsequent month i.e. April 2005 - there is no provision which contemplates making of investment of donation within any particular period or a provision which says that absence of making investment will result in the trust losing exemption u/s.11 of the Act - these donations have been invested in the manner required in the month of April, 2005 – in favor of assessee
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