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2022 (11) TMI 272 - AT - Income TaxExemption u/s 11(1)(d) - addition being specific donation received by the appellant trust as corpus donation as income of the assessee - whether contributions are “Voluntary”- Assessee was required to explain the nature of the corpus donations and to explain the source of such donation - HELD THAT:- As referring to Copy of Resolution passed by the assessee titled “to discuss regarding donation received on per kg fat" clearly show that the contributions are not “Voluntary” in nature. The assessee has suo moto passed a resolution to “collect” donation form the made by Milk Producers, which goes contrary to the assertion made by the assessee that contributions are “Voluntary” in its character. Apparently, the Milk producers do not any choice or say in the matter whatsoever. Merely producing a receipt which states that the amount has been paid towards the corpus fund of the appellant cannot lead us to accept that the contribution qualifies as a “Corpus donation” when notably these receipts do not even state the specific purpose that they are being given for. Moreover, as noted above, the donations are clearly not “voluntary”. The quantum of the cess, as well as the mode of computation thereof, has been decided by the Assessee and the Donor have no discretion or say in the matter. In Russel v. Vestry of St. Giles 3E & B 416, Lord Campbell observed 'voluntary contributions' here do not mean annual subscriptions paid for value received or expected to be received by the party paying, but means a gift made from disinterested motives for benefit of others. In Society of Writers v. I.R. 2 TC 257 the Court held that the entrance fees and subscriptions paid by entrants to a society or institution as a condition precedent to their membership and as the price of admission to the privileges and benefits of the society or institution are given under a contract and are not voluntary. The Delhi High Court in the case of Divine Light Mission [2004 (4) TMI 25 - DELHI HIGH COURT] held that membership fee and subscription amounts received by trust/society from its members cannot be characterized as voluntary contribution within meaning of expression ‘fund’ in Section 12. We find no infirmity in the order of Ld. Assessing Officer and Ld. CIT(A) and we are of the view that the assessee is not eligible for claim of deduction under Section 11(1)(d) of the Act. In the result, the appeal of the assessee is dismissed.
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