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2017 (5) TMI 679 - AT - Income TaxGranting exemption u/s.11 - earning income from letting out of Kalayana Mandapam for marriage and other functions - whether regard to the terms of the Trust Deed, it can be said that the activities carried on by the assessee in the form of running of community hall, viz "Chennai Kamawar Kalyana Mahal” was itself held under the Trust - Held that:- In this case, it is brought on record by the AO that the assessee collected ₹ 11,28,000/- as corpus donation from 93 persons who performed functions at “Chennai Kamawar Kalyana Mahal”. In addition to this, ₹ 4,70,000/- was rent for utilizing the facilities of “Chennai Kamawar Kalyana Mahal” by 53 persons, totaling is ₹ 15,98,000/-. As against this, in guise of corpus donation collected ₹ 11,28,000/- from the persons, who have performed the functions in the “Chennai Kamawar Kalyana Mahal”. That amount of ₹ 11,28,000/- cannot be considered as corpus donation instead it should be a rental income. On enquiry by assessing officer, it was proved that the persons who paid rent of community hall and who paid the corpus donation were same. This is an act of quid pro for hiring the hall and no question of voluntary contribution in this payment. It is also to be noted that the dates exhibited in both cases were same. Being so, the provisions of sec.2(15) of the Act is squarely applicable as total receipts of rent from community hall exceeds ₹ 10 lakhs, and we do not find any infirmity in the order of AO in rejecting the claim of exemption u/s.11 of the Act. Accordingly, the order of Ld.CIT(A) is reversed and the order of AO is restored. - Decided against assessee.
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