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2017 (1) TMI 555 - AT - Income TaxBenefit of section 11(1) (d) denied - voluntary contribution of Thermax Ltd towards corpus of the trust - Held that:- It emerges from the record that the impugned donations were given by Thermax Ltd to the assessee as corpus donation, a fact which is evident from the letter mentioned above. Thermax Ltd the donor has given specific direction for corpus of the assessee trust and in our considered opinion the same cannot be interpreted in a different manner by intendment and presumptions by Authorities below. Similar methodology of Thermax Ld. Donation and their similar utilization has been accepted by the department in past years as depicted in the chart above. The reasons given by ld. CIT(A) to adopt different view is based on the misinterpretation and presumptions, which are unsustainable. Voluntary contribution of Thermax Ltd towards corpus of the trust cannot be included in the income of the assessee in clear terms of section 11(1)(d). Our view is fortified by Visakhapatnam ITAT judgment in the case of Nagarjuna Educational Society (2011 (7) TMI 580 - ITAT, VISAKHAPATNAM ) and by Delhi ITAT, in the case of Dharma Pratishthanam (1984 (8) TMI 117 - ITAT DELHI-A). Thus findings of Ld. CIT(A) on this issue is hereby reversed. Violation the provision of sec. 11 and 12 by giving donation for furtherance of its objects to the other registered charitable trust having similar objects. Nothing has been brought on record to suggest that assessee's to carry out its objects there is any clause in the memorandum prohibiting this. It is settled law that the charitable objects can also be promoted with own efforts and by donating other trust having charitable objects. Our view is supported by Mumbai ITAT in the case of Suman Ramesh Tulsiani (2012 (12) TMI 58 - ITAT MUMBAI) which again relies on various other judgments besides, Hon'ble Bombay High Court in the case of trustees of the Jadi Trust [1981 (4) TMI 75 - BOMBAY High Court ]. Thus no hesitation to hold that assessee's trust can promote its charitable objects by giving donation to other charitable organizations and such donations will amount to application of income of the trust.Thus, the findings of the Ld. CIT(A) on the second issue is also reversed.
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