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2015 (8) TMI 77 - AT - Income TaxAddition on account of Dharmarth Receipts - whether the receipt is not by a charitable trust, but by the assessee company, which is doing business and trading? - Held that:- Once the receipts are routed as such to a charitable trust by the assessee company and the nature of that trust has not been questioned, we hold that the receipts are Dharmarth receipts and nothing else. The consistent acceptance of such receipts by the Department itself, for as many as eight earlier assessment years, mandates the acceptance of such receipts of the assessee during the year under consideration also as Dharmarth receipts, when no change in facts has been pointed out by the authorities to have come about during the year under consideration. That Dharmarth receipts are not taxable, has been laid down as law by the Hon'ble Supreme Court, way back in the year 1979, in the case of 'CIT Vs. Bijli Cotton Mills (P) Ltd.' (1978 (11) TMI 1 - SUPREME Court). Clause of no. 30 of memorandum and articles of association of the assessee company clearly shows that one of the objectives of the assessee company is charity. The learned CIT(A) has remained oblivious of this specific clause in the memorandum and articles of association of the assessee company, while holding that 'the appellant could not establish before me that the objectives of the company as per memorandum and articles of association was also to carry out charity. Thus addition deleted - Decided in favour of assessee.
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