TMI Blog2011 (7) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... tions as per provisions of the Act - Held that: if the assessee is not entitled to exemption u/s 10(23C)(iiiae) then it will not be a bar in not claiming benefit u/s 11 to 13 of I.T. Act - Decided in favor of the assessee Regarding depreciation - assessee has not got the approval for the medical college - Held that: it cannot be said that medical college building can be considered for the passive use for the hospital because there was no approval in respect of the institution of running medical college. - IT Appeal No. 105 (JP.) of 2011 - - - Dated:- 8-7-2011 - R.K. GUPTA, N.L. KALRA, JJ. G.M. Mehta for the Appellant. Vinod Johri for the Respondent. ORDER N.L. Kalra, Accountant Member The assessee has filed an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year, the medical college has not started. Therefore, exemption u/s 10(23C)(iiiad) of the Act does not arise. 2.3 Before the ld. CIT(A), the assessee contended that income of the Trust is exempt in view of provisions of Section 10(23C)(iiiad) of the Act as receipts are less than Rs. 1.00 crore. The donation of Rs. 2,90,40,500/-cannot be included in Rs. 1.00 crore because such donations were received towards corpus of the trust and wee credited in the balance sheet. The ld. CIT(A) has referred to Section 10(23C)(iiiad) of the Act in which it has been mentioned that the trust or institution should exist solely for educational purposes while in the case of the present trust, it is noticed that there are eight main objects. It was therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions from contributions. 12. [(1)] Any voluntary contributions received by a trust created wholly for charitable or religious purposes or by an institution established wholly for such purposes (not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution) shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly.] Thus the receipts which are forming part of the corpus of the trust are not to be included for the purpose of Section 11 of the Act and it is not mentioned in Section 12 of the Act that such receipts will als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns may be intended to enlarge the meaning of a particular word or to include matters which otherwise may or not may not fall within the provisions. Hence for the purpose of Section 10(23C)(iiiae), one has to consider the annual receipts without excluding the contribution towards corpus of the trust. It is not the case of the assessee that such receipts are not receipts of the hospital. One has to consider the correct receipts. It is also a well established law that entries in the books are not conclusive and one has to be see the transactions as per provisions of the Act. We therefore, hold that the assessee is not entitled to be covered u/s 10(23C)(iiiae) of the Act. Since the receipts were more than Rs. 1.00 crores therefore, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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