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2017 (9) TMI 1461 - AT - Income TaxExemption u/s 11 - proof of charitable purposes - disallowance of donations received - voluntary donations received - Held that:- In the case before us, it is seen that the assessee has received donations from various persons and more than 50% of the donations are from people who are not at all concerned with the admission of the students whereas the AO has disallowed the entire donations. It is also seen that all the donations are recorded in the books of account of the assessee and most of the parents and relatives of the students also have stated that the donations are voluntary. Only a few parents of the students have stated that the donations are connected with the admissions and some of these statements have also been retracted subsequently. There is also no finding that the assessee has misused or not used the donations for any other purpose than the purpose for which they have been given i.e. for educational purpose. In such circumstances, we are of the opinion that the exemption u/s 11 of the Act cannot be denied in toto to the assessee with regard to the voluntary donations received by the assessee. Only such donations, which are admittedly not voluntary can be disallowed. AO is directed accordingly. Revenue’s appeals are partly allowed.
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