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2020 (3) TMI 496 - AT - Income TaxExemption u/s 11 - Corpus donation receipt - AO has noticed that assessee has received contributions but not submitted 12A certificate therefore the amounts received by the assessee as income as per section 2(24)(iia) of the Act and not exempt u/sec. 11(1)(d) - HELD THAT:- We find from the assessment order that when the assessee has submitted that the donations received are voluntarily for a specific purpose, then the Assessing Officer ought to have called the assessee for submission of details of donations received, but the Assessing Officer without examining the nature of the donations, simply rejected the explanation of the assessee and added to the total income of the assessee, in our opinion, the Assessing Officer is not correct in adding the income. That apart once the assessee has submitted that the donations received voluntarily for specific purpose, it is the duty of the Assessing Officer to examine who is the person donated and what purpose he has donated all the details has to be examined and thereafter has to decide the donations are in the nature of corpus donations or income of the assessee, without doing simply rejected the explanation. However, on appeal ld. CIT(A) by considering the explanation of the assessee and by following the decision of the Hon'ble Bombay High Court in the case of R.B. Shriram Religious and Charitable Trust [1987 (1) TMI 13 - BOMBAY HIGH COURT] and also the decision of the ITAT, Chennai Bench in the case of Indian Society of Anaesthesiologists [2014 (5) TMI 1031 - ITAT CHENNAI] and also Vokkaligara Sangha [2015 (8) TMI 920 - ITAT BANGALORE] gave a finding that the voluntary contributions received by the assessee for a specific purpose cannot be regarded as income u/sec. 2(24)(iia) As the appellant got registered u/s.12AA of the Act and as the donations/voluntary contributions received by the appellant society are of Corpus and Capital nature, same are to be treated as exempt from tax liability, as the principles relating to judicial discipline assume significance and the priority. Accordingly, following the ratios of the judicial pronouncements mentioned supra, it is treated that the donations/voluntary contributions received by the appellant society are outside the taxations, even for the period prior to its registration u/sec. 12AA. Hence, the Assessing Officer is directed to delete the disallowance/addition - Decided in favour of assessee.
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