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2014 (4) TMI 1008 - HC - Income TaxAllowability of exemption u/s 11 of the Act – Building fund received as donations to be treated as income u/s 68 of the Act or not – Held that:- An opportunity was given to the Revenue to substantiate their contentions and asked to verify the Bank Accounts furnished by the assessee- Revenue informed that the details of the donations received through Cheques is in accordance with law – the assessee is the charitable trust - any voluntary contribution received by a Trust created wholly for charitable or religious purpose shall be deemed to be income derived from property held under the Trust wholly for charitable and religious purpose. Relying upon Director of Income-Tax (Exemption) Versus Keshav Social And Charitable Foundation [2005 (2) TMI 84 - DELHI High Court] the amounts were used for charitable purposes even though the assessee failed to disclose the names and addresses of the donors - the amount was utilized by the Trust wholly for the charitable or religious purposes, the assessee has fulfilled the condition imposed u/s 11 of the Act - Section 11 contemplates that any income derived from property held under Trust wholly for charitable or religious purposes, to the extent to which, such income is applied to such purposes is exempted u/s 11(1)(a) of the Act - the assessee is a charitable Trust and its income is to be exempted u/s 11 of the Act – there was no infirmity in the order of the Tribunal – Decided against Revenue.
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