TMI Blog2017 (5) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... of authorities below and direct the Assessing Officer to grant exemption to assessee u/s 10(23C)(iiid) of I.T. Act. - Decided in favour of assessee - ITA No.380/Del/2017 - - - Dated:- 16-5-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Assessee : Shri Somil Aggarwal, Shri Deepesh Garg, Advocate For The Department : Ms. Bedobani, Sr.DR Per BHAVNESH SAINI, Judicial Member ORDER This appeal by the assesse has been directed against the order of Ld. CIT(A) Ghaziabad dated 3rd December 2015 for assessment. Year 2012-13 on the following grounds :- 1.That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iiiad) would not apply because assessee has not been granted registration u/s 12AA nor registered u/s 10(23C)(vi) of I.T. Act. The claim of assessee of deduction u/s 10(23C) (iiiad) was disallowed and surplus of ₹ 22,76,539/- was taxed and added to the income of the assessee. 3. The assessee reiterated the submissions before Ld. CIT(A) and it was explained that during the year under consideration assessee received ₹ 22 lacs from Shri Chaganlal Sharma, the founder member against the corpus fund for meeting out the capital expenditure. The Assessing Officer wrongly taken donation as ₹ 22,76,539/-. The Assessing Officer added the corpus fund amount to gross revenue receipt. Since corpus fund was received with specific purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in ITA No. 927/09 (supra), have dismissed the Department s appeal against the aforesaid Tribunal order, by observing as follows :- The respondent/assessee is admittedly a Charitable Organization which is a trust registered under the Indian Trust Act which has also been granted registration under the Income Tax Act w.e.f. 1.4.2003. The assessee received certain donations towards its corpus which had been deposited in the bank and the money was admittedly spent for acquiring land for construction of a college. In these circumstances, we are of the opinion that the CIT(A) as well as ITAT rightly concluded that the donations received towards corpus of the trust would be capital receipt and not revenue receipt chargeable to tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re identical to facts of case decided by ITAT Delhi Bench in case of Smt. Basanti Devi Shri Chakhan Lal Garg Education Trust and other orders of ITAT. Therefore, to maintain consistency, orders of ITAT are followed. Order of CIT(A) is confirmed. Appeal dismissed. 6. He has also relied upon order of ITAT Calcutta C Bench in the case of Shri Shankar Bhagwan Estate vs. ITO 61/ITD/196 in which it was held :- Donations made with a specific direction that they shall form part of the corpus of the religious trust are not income assessable, under s.2(24) (iia). 7. On the other hand Ld. DR relied upon orders of the authorities below and submitted that Assessing Officer has correctly taken aggregate annual receipts of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee society is different from education institution whose aggregate annual receipts are less than ₹ 1 crore. Therefore following the above orders of various benches of the Tribunal, I am of the view that corpus fund which is meant for specific purpose to meet out capital expenditure could not be part of annual receipts of educational institution, even if no registration u/s 12AA have been granted. If the corpus fund is excluded, the balance aggregate annual receipt of the assessee s educational institution would be less than ₹ 1 crore. Therefore assessee would be entitled for exemption u/s 10(23C)(iiid). In this view of the matter I set aside the orders of authorities below and direct the Assessing Officer to grant exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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