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2020 (6) TMI 129 - AT - Income TaxExemption u/s 11/12 - corpus donations - exemption to incomes of charitable trust - findings of the AO that the activities of the assessee were not charitable - HELD THAT:- CIT(A) has noted the fact that the assessee had been incurring expenditure on running of school which being for the purpose of education qualified as charitable activities u/s 2(15) and has spent on the activities of running medical camps and old age homes which also qualified as charitable activities in the nature of medical relief to the poor u/s 2(15). Also noted that the lungar expenses are merely provision of food to the attendees of medical camps,in old age homes and Manav Seva Kender. The aforesaid facts have remained uncontroverted before us. Moreover, the Ld.DR has been unable to point out any infirmity in the same. In view of the same and on considering the factual findings of the Ld.CIT(A), we hold that there is no infirmity in the order of the Ld.CIT(A) holding the assessee as carrying out charitable activities within the definition of the same u/s 2(15) of the Act and eligible for exemption u/s 11/12 of the Act. Ground No.1 raised by the Revenue is, therefore dismissed. Corpus donation - There were separate receipt books for collecting the corpus donations which was marked with the stamp “Bhumi Kharidane Hetu Dhan Seva” and all donations collected under these receipts had been categorized as corpus donations by the assessee, which amount was kept in a separate bank account, separate from the general donation and also that FDRs had been made from the same which were subsequently used in subsequent years for purchase of land through issuance of cheques and drafts. The Ld.CIT(A) has also noted the fact that the assessee had maintained separate record of general donation and corpus donation and that its accounts were duly audited. CIT(A), we find, has further noted that the observation of the AO that there were no specific directions by the donor for treating the donation as corpus donation, was based on mis-appreciation of facts since the receipts referred to by the AO for basing his observation were relating to general donations and not corpus and donations. DR has been unable to controvert any of the above factual findings of the Ld.CIT(A).Since we find that the Ld.CIT(A) has given a categorical finding of fact, based on evidences produced before him, that the donations shown by the assessee as corpus donations were given with the directions that they qualified as such and which was the sole reason for the Revenue denying the claim, we do not see any reason to interfere in the order of the CIT(A) treating the corpus donations as such. The ground of appeal No.2 raised by the Revenue is, therefore, dismissed. Allowance of the claim of the assessee as expense incurred for purchase of land as utilization/application as per the provisions of section 11/12 - HELD THAT:- CIT(A) has noted from the documents and evidences and books of accounts of the assessee produced before him that the utilization by the assessee for purchase of land was out of general donation received and not out of corpus donation and that the AO had mis-appreciated the facts in this regard while not allowing the claim of the assessee. The said factual findings of the Ld.CIT(A) have not been controverted before us, nor has the Ld.DR made any arguments before us as to why the disallowance be upheld. AO, we have noted had made the disallowance noting that the same had been made out of corpus donation which did not qualify as such, but since the Ld.CIT(A) has given a finding of fact that the investment in land had been made out of general donations, which fact has remained uncontroverted before us, We see no reason to interfere in the order of the Ld.CIT(A) allowing the claim of the assessee of utilization of amount incurred for purchase of land for the purposes of claiming exemption u/s 11/12. - Decided against revenue.
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