TMI Blog2010 (1) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... would be used for construction of building. In such circumstances, the plea of the assessee that it should be taken as donation towards the corpus is reasonable. - Decided in favor of assessee. - ITA No. 1091/Chd/2009; - - - Dated:- 29-1-2010 - G.S. Pannu, Sushma Chowla, JJ. Harry Rikhi for the Appellant Inoshi Sharma for the Respondent ORDER G.S. Pannu, Accountant Member:- 1. This appeal by the assessee is directed against the order of the CIT(A) dt. 1st Oct., 2009 pertaining to the asst. yr. 2006-07. The substantive dispute in this appeal relates to an addition of Rs. 40,55,480 made by the AO. 2. The brief background and the facts leading upto the present dispute can be summarized as follows. The, appellant is a society registered under the Societies Registration Act, 1860 and runs a temple at Kullu. The institution, Shree Mahadevi Tirath Sharda Ma Seva Sangh (Vaishno Mata Mandir) is run by the appellant society. The society is registered under s. 12AA of the Act with the CIT, Shimla (in short 'the CIT' ) w.e.f. 28th Feb., 2002. For the year under consideration, the assessee filed a return of income on 26th March, 2007 declaring an income of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollected in a box kept in the temple premises which was earmarked for collection of donations meant for construction of building only. The CIT(A) has not upheld the stand of the assessee on the ground that the assessee failed to provide the requisite details or any documentary evidence to prove that the donations in question were made with specific directions for 'construction of building'. Accordingly, the appeal of the assessee was dismissed. 4. Before us, learned counsel for the assessee vehemently pointed out that the CIT(A) has failed to appreciate the facts and circumstances of the case in its proper perspective. The learned counsel pointed out that the assessee has collected donations earmarked for being spent on construction of building in the same manner as in the past years. It was pointed out that the impugned amount has been credited to the 'building fund' in the balance sheet which also included an opening balance and on the asset side, the assessee has shown the expenditure on construction of building. It was pointed out that the impugned sum has been spent exclusively towards the construction of building and there is no dispute on this aspect. The learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conditions under s. 11/12 of the Act. In support, the learned counsel has relied on following decisions:- (i) St. Ann's Home for the Aged vs. ITO (1982) 13 TTJ (Bang) 185; (ii) ITO vs. Maliram Pooranmal Charitable Trust (1981) 12 TTJ (Jp) 245; (iii) Shri Vasu. Pujiya Jain Derasar Pedhi vs. ITO (1991) 39 TTJ (Jp) 337; (iv) Agnel Charities (Agnel Sewa Sang) vs. ITO (1988) 31 TTJ (Del) 160 in support of his submissions. 5. On the other hand, the learned Departmental Representative has pointed out that during the course of assessment proceedings, the assessee was asked to furnish the complete names and addresses of the donors who have made the impugned donations with specific directions i.e. for 'building construction'. It was pointed out that the assessee vide letter dt. 3rd Dec., 2008 addressed to the AO pointed out that the said information was not available and therefore, the AO has not accepted the plea of the assessee that the impugned donations have been received with specific directions to utilize the same for construction of building only. As a result thereof, the impugned amount has been rightly held to be assessable as a voluntay/general donation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ox were to be utilized for other activities of the society. Accordingly, the appellant claims that respective boxes have been kept in the temple premises. The appellant has put on- record photographs showing the notice board and the identification of the boxes meant for collection of different donations. The claim of the assessee is that the impugned amount of Rs. 40,55,480 has been collected from a box kept in the temple for the purpose of building construction. The daily receipts are counted in the evening from the 'building donation box' and the amounts so accounted for in the books of account. The assessee has also pointed out that the said sum is credited in the 'building fund' in the balance sheet and the amounts are utilized for construction of the building which are supported by entries in the books of account. In this connection, we have perused the audited balance sheet and income and expenditure account for the year under consideration which are placed in the paper book. In support of this practice, testimony of the local Gram Panchayat etc. has been placed on record, which remains uncontroverted. In these circumstances, the appellant claimed that the impugned donations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in s. 12(1) is "contributions made with a specific direction that they shall form part of the corpus" is relevant. It is clear that the manner in which the specific direction is to be made has not been laid down in the Act or in the IT Rules, 1962. In other words, there is no method or mode prescribed by law of giving such directions. Therefore, it would be in the fitness of things to deduce that the same are to be gathered from the facts and circumstances of each case. 9. In the case of Shri Vasupujiya Jain Derasar Pedhi (supra), a dispute had arisen as to whether the donations received can be said to be received with specific directions that they shall form part of the corpus of the trust. It was observed that the counterfoil receipts issued by the trust were under the head 'Mandir Nirman' and the same were held to be showing that the donations were treatable as corpus donations. Similarly, in the case of Agnel Charities (supra), the assessee had staged a drama for raising funds for construction of school building. The circular letter issued relating to the drama mentioned that the assessee was inviting subscriptions and donations for school building. Such donations receive ..... X X X X Extracts X X X X X X X X Extracts X X X X
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