Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1605 - AT - Income TaxExemption u/s 11 - substantive addition made by the AO by withdrawing the benefit of Section 11 due to receipt of non-voluntary contribution / capitation fees - HELD THAT:- There is no merit in the case of M/s. MAC Educational Foundation for treating the amount of Rs.10 lakhs as non-voluntary contribution. In the case of M/s. Sri Venkateswara Educational and Health Trust, AO had simply stated that the assessee trust has received capitation fees without any evidence to establish the same. It is also not clear whether this amount is received from other connected/related trusts or directly received from the donors. AO instead of clarifying these issues has made substantive addition in the hands of the assessee, which is erroneous. As apparent that the AO without examining the correct source of actual donation had come to the conclusion that there were quid-pro-quo arrangements for the payment of donation only based on certain presumptions and assumptions and not based on well ascertained facts. Though it may appear from the circumstance of the case that there may be quit-pro-quo arrangement for receipt of donation, unless it is established by cogent evidence drastic decision cannot be arrived at by withdrawing the benefit of Section 11 of the Act to all the charitable trusts which will jeopardize the functioning and the very existence of the charitable educational institutions. There is no finding with respect to any violation of Section 13 of the Act, because the donations received by the respective charitable trusts are spent according to the objects of the trusts. It is also apparent that this bench of the Tribunal [2014 (6) TMI 1068 - ITAT CHENNAI] for the assessment year 2010-11 and [2013 (8) TMI 1166 - ITAT CHENNAI] for the assessment year 2008-09 in the case of M/s. MAC Public Charitable Trust had held that the benefit of Section 11 & 12 of the Act cannot be denied to the assessee for extending loan to another connected/related charitable educational institution. Further the assessee trusts have issued valid receipts for the donations received and had maintained the names, address of the donors as per the provisions of the Act. CIT(A) had also made a categorical finding that the assessee trust had not only extended donation to M/s. Sri Venkateswara Educational and Health Trust but to various other charitable institutions for carrying out charitable activities. We are of the considered view that no interference is necessary in the decision of the CIT(A) who had extensively analyzed the issue and decided the matter by placing reliance on the various decisions of higher judiciary. Therefore, we hereby sustain the order of the CIT(A) in the case of all the assessees trusts mentioned herein above. Appeals of the Revenue are dismissed.
|