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2015 (12) TMI 1832 - ITAT CHANDIGARHExemption u/s 11 - corpus fund received - AO noted that all the seven persons denied having given any donation to the assessee thus addition proposed u/s 68 - HELD THAT:- As held in the case of CIT Vs P.K.Noorjahan [1997 (1) TMI 6 - SUPREME COURT] the addition cannot be made by AO just for the sake of making addition - donation received from the persons who were not called and the persons who were called and accepted the fact of giving donation, cannot be said to be not genuine. As regards the persons who had come and denied before the Assessing Officer the fact of giving donation, we observe that certain fallacies were pointed out by the assessee before the lower authorities, which have not been dealt with by either the Assessing Officer or the learned CIT (Appeals). Further, cross examination of these persons was specifically asked by the assessee, which was not provided to it. In this view, the addition even on these accounts cannot be made. The addition on account of corpus donation in the present case, even if sustained, would go to increase the income of the assessee. Even if the corpus donation, which is held to be bogus, amounting to ₹ 1 crore, will, at best go to increase the income of the assessee. The receipts will become ₹ 8,16,18,794/- and the application being ₹ 21,51,18,322/-, is in any case more than 85% of the receipts. Therefore, the assessee will get the exemption under section 11 of the Act even on this count. - Decided in favour of assessee.
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