TMI Blog2005 (2) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of donation receipts – There was, therefore, full disclosure of income by the assessee and also application of the donations for charitable purposes. It is not in dispute that the objects and activities of the assessee were charitable in nature - Held that Section 68 has no application - ITA 220/2002 - - - Dated:- 3-2-2005 - Judge(s) : SWATANTER KUMAR., MADAN B. LOKUR JUDGMENT The judgment of the court was delivered by Madan B. Lokur J.- The appellant is aggrieved by an order dated January 10, 2002 passed by the Income-tax Appellate Tribunal, Delhi Bench-A, New Delhi (for short "the ITAT") in I.T.A. No. 2827/Delhi/96 for the assessment year 1991-92. The assessee is a charitable trust and its main activity is to provide me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irected the Assessing Officer to allow exemption to the assessee under section 11 of the Act and it was held that treating the donations of Rs. 18,24,200 as the income under section 68 of the Act was not correct. The Revenue filed an appeal which came to be disposed of by the order under challenge. The Income-tax Appellate Tribunal was of the view that since more than 75 per cent. of the donations received by the assessee were spent in charitable purposes, the addition of Rs. 18,24,200 was not correct. The Income-tax Appellate Tribunal appears to have accepted the submission of learned counsel for the assessee that once a donation is received, it will be deemed to be received for a charitable purpose unless the donation was received tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its donations, but had also submitted a list of donors. The fact that the complete list of donors was not filed or that the donors were not produced, does not necessarily lead to the inference that the assessee was trying to introduce unaccounted money by way of donation receipts. This is more particularly so in the facts of the case where admittedly more than 75 per cent. of the donations were applied for charitable purposes. Section 68 of the Act has no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, therefore, full disclosure of i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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