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2021 (2) TMI 326 - AT - Income TaxExemption u/s 11 denied - hundi receipts embedded with specific purpose of corpus donation u/s. 11(1)(d) - HELD THAT:- None of the lower authorities have disbelieved or rebutted the assessee's plea that the impugned sums are in the nature of a 'hundi receipts' being donors' donations in cash or kind only; as per the state endowment law. There can be no dispute in principle that in case of a general vis-à-vis specific provisions, the latter prevails over the former as per maxim 'Generalia Specialibus Non Derogant'. We, however, do not find the facts of the case attracting 'repugnancy' qua the above state law vis-à-vis tax law as per Article 251 of the Constitution of India. The foregoing legal maxim also does not apply here. The clinching fact that emerges here is that assessee's 'hundi' receipts in cash from donors are not revenue items but capital receipts only. The relevant provisions of the 'Endowment Act' duly makes it clear that they are corpus donations which nowhere go against the provisions of tax law. We therefore see no reason to sustain the learned lower authorities' action treating the assessee's hundi receipts embedded with specific purpose of corpus donation u/s. 11(1)(d) of the Act are not entitled for exemption being revenue receipts. We thus direct the Assessing Officer to delete the impugned addition. - Decided in favour of assessee.
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