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2023 (1) TMI 1077 - AT - Income TaxExemption u/s 11 - assessee not having registration u/s. 12AA - voluntary donations received for specific purpose - Addition on account of corpus contribution treating the same as revenue receipts - HELD THAT:- In the present case, as is evident from the impugned order that the assessee claimed a fund as donation to the corpus of the assessee. The AO held that the assessee is not eligible for exemption as the assessee not having registration u/s. 12AA of the Act. Admittedly, the voluntary donations received for specific purpose forming the corpus of assessee’s trust for directly made to the Balance sheet as the capital receipt. Therefore, when the donations forming the corpus of the assessee’s trust received with specific purpose are capital in nature. Thus, we hold the corpus specific voluntary donations are not taxable in the case of unregistered trust also and in view of the same the order of CIT(A) is not justified. Therefore, the denial of exemption for not having registration u/s. 12AA of the Act resulted into disallowance therein is deleted. Thus, the grounds raised by the assessee are allowed.
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