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2017 (4) TMI 765 - AT - Income TaxTaxability of Corpus donations receipt - scope of total income u/s 2(24)(iia) - unregistered trust u/s 12AA - Applicability of provisions of Section 11 (1)(d) - capital receipt - Held that:- Tribunal in Chandraprabhu Jain Swetamber Mandir Versus Assistant Commissioner of Income-Tax [ 2016 (11) TMI 1041 - ITAT MUMBAI] has made an elaborate discussion with respect to taxability of capital receipt. In the aforesaid case also, the assessee trust was not having registration u/s.12A / 12AA of the Act. In that case also the Assessing Officer held that the provisions of Section 11 & 12 of the Act are not applicable to the assessee and thus the provisions of Section 11 (1)(d) of the Act with respect to voluntary contribution made with specific direction that they should form corpus of the trust shall not be included in the total income and the Assessing Officer added the same as income of the assessee. The Tribunal also considered various judicial pronouncements as contained at page 5 (page 54 of the paper book) of the order. It is also noted that various case laws, relied upon by the assessee, which are discussed at page 7 (page 56 of the paper book) were analysed and thereafter, reached to a particular conclusion. The Tribunal held that the corpus donation, received by the trust, for specific purposes cannot be brought to tax despite the fact that the assessee is not registered u/s. 12A / 12AA of the Act. Identical facts are available in the present appeal before us, thus, following the aforesaid order of the co-ordinate Bench, this ground of the assessee is allowed and the learned Assessing Officer is directed that the voluntary contribution received by the assessee for specific purposes (in the present appeal building fund) cannot be regarded as income u/s.2 (24)(iia) of the Act being capital receipt, being corpus fund and tied up grants for specific purposes. This ground of the assessee is therefore, allowed.
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