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2020 (1) TMI 1432 - AT - Income TaxExemption u/s 11 - grant of registration u/s 12AA - whether the donation collected has been utilized for the purpose of construction of temple specifically and as to whether the assessee has been doing any other activity against the aims and objects of the society and as to whether there is any receipt in the hands of the society in the nature of income? - HELD THAT:- As the amount of donation has been spent towards the construction of temple for achieving the aims and objects of the society, therefore the addition qua donations is unsustainable - Assessee further claimed that the Revenue department would have sought the clarification from the appellant society to the effect as to whether the donation collected has been utilized for the purpose of construction of temple specifically and as to whether the assessee has been doing any other activity against the aims and objects of the society and as to whether there is any receipt in the hands of the society in the nature of income. Authorities below failed to exercise on the aforesaid situations and passed the order on conjectures and surmises and hence in the interest of justice we are inclined to partly set aside orders passed by the authorities below and to remand back the issue qua addition to the file of the AO for decision afresh while taking into consideration the amount received by the assessee and its utilization as to whether the same and upto what extent has been utilized by the assessee for the construction of temple and/for achieving the aims and objects of the society. Whether the assessee has earned any income in its hand. Further as to whether the society has changed its aims and objects at any point of time at the time of filing the return for the relevant AY 2014-15 and before declining and grant of registration u/s 12AA of the Act. If the AO will find that the amount of donation has been spent for the construction of temple, then the Assessee shall be entitled to claim the amount to that extent as capital receipts in nature. Consequently the issue qua addition is remanded to the file of the assessing Officer for decision afresh on the basis of observations and analyzations made above and in the light of decision of tribunal in the case of Income Tax Officer, Dharamshala v. Chime Gatsal Ling Monastery [2014 (10) TMI 1033 - ITAT, CHANDIGARH] - Appeal filed by the assessee stand allowed for statistical purposes.
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