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2019 (11) TMI 757 - AT - Income TaxExemption u/s 11 - building fund receipts received on capital account - tribunal restored the registration granted to the assessee under section 12AA - assessee contended that development fund is charged from the students for development of the infrastructure of the society/college/institution for construction of the building and purchase of capital asset and submitted that this fund is part of the corpus fund of the society and has been shown as part of the capital fund of the society - whether the contribution received for construction of building etc. from the student falls under the voluntary contribution for corpus of the trust as per section 11(1)(d) of the Act or not? - HELD THAT:- It is evident from section 11(1)(d) of the Act that there is no condition of prescribed amount of application of the income received in the form of voluntary contribution made with a specific direction that they shall form part of the corpus of the trust or institution, thus, the Learned CIT(A) is not justified in considering the development fund received under section 11(1)(a) or 11(1)(b) for the purpose of application of income upto 85% towards charitable purposes. But we find that Ld CIT(A) has not examined the building development fund in the light of the requirement of section 11(1)(d) of the Act that donors should specifically direct that said voluntary contribution shall form part of the corpus of the trust or institution. As this important requirement of the law has not been examined either by the ld. CIT(A) or by the Assessing Officer, we feel it appropriate to restore this issue to the file of the Assessing Officer for deciding afresh with the direction to the assessee to produce necessary documentary evidence to substantiate that donors have specifically directed to treat the development fund given by them shall form part of the corpus of the trust of the institution. The Assessing Officer shall after verification of the documentary evidences produced by the assessee decide the issue in accordance with law. Appeal of the assessee is accordingly allowed for statistical purposes.
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