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2023 (12) TMI 932 - ITAT JODHPURExemption u/s 11(1)(d) - misutilization of receipts of earmarked funds as corpus donation - assessee-trust had taken loan- from bank for purchasing land from UIT but had repaid loan& interest by utilising the donation amount but not for construction of hospitals - HELD THAT:- The foreign donation was received as a corpus donation and within the meaning of section 11(1)(d). The fund was duly delayed for delay in approval from FCRA, where it is mentioned that the funds is for “construction/running of hospital/dispensary and clinic”. The assessee had utilized this donation for repayment of loan which is not at all violation section 11(1)(d) and duly covered with consent of the donor. Further the donor agreed to donate amount to Rs. 20 crores to the assessee in next two years for carrying out the activities of the assessee trust in Udaipur. The donor, Dr. Kirti Jain has also submitted the letter for the purpose of donation on dated 06.01.2014. The fund was donated by founder member of the trust. The source is well explained. There is no deviation in activities of trust as per the stated main object. Expenses were incurred for charitable activities. The delay in project was due to stuck up of construction as per order of Hon’ble Jurisdictional High Court. In our considered view, there is no violation of section 11(1)(d) r.w.s. 11(1). We find that there is no valid reason to interfere in the impugned appeal order. Therefore, the ground nos. 1, 2 & 3 of the revenue are dismissed.
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