Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 456 - HC - Income TaxExemption u/s 11 - corpus donations whether regarded as income under Section 2(24)(iia) ? - HELD THAT:- Substantial question of law which is sought to be raised by revenue would not arise for consideration, as it is a question of fact which has been resolved by First Appellate Authority as well as Tribunal in favour of assessee, by arriving at a conclusion that voluntary contribution received for a specific purpose cannot be regarded as income under Section 2(24)(iia) since they are capital receipt and tied up grants for specific purpose. Tribunal noticed that assessee has considered the said voluntary contribution as a loan and had refunded the same to the donors though would not have any relevancy to the facts on hand, since it is held that this is a capital receipt and cannot be regarded as income under Section 2(24)(iia) of the Act and it would be immaterial as to whether same amount was converted by the assessee as loan and refunded to the donors. Tribunal has held, and rightly so, that said amount cannot be subjected to tax on the ground that assessee was not granted registration under Section 12-AA of the Act, inasmuch as, assessee did not claim eligible for exemption under Section 11 of the I.T. Act, but on the other hand, claim of the assessee was to the affect that it was a voluntary contribution and not liable to tax and it is not an income.
|