TMI Blog2019 (11) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(b) for the purpose of application of income upto 85% towards charitable purposes. But we find that Ld CIT(A) has not examined the building development fund in the light of the requirement of section 11(1)(d) of the Act that donors should specifically direct that said voluntary contribution shall form part of the corpus of the trust or institution. As this important requirement of the law has not been examined either by the ld. CIT(A) or by the Assessing Officer, we feel it appropriate to restore this issue to the file of the Assessing Officer for deciding afresh with the direction to the assessee to produce necessary documentary evidence to substantiate that donors have specifically directed to treat the development fund given by them shall form part of the corpus of the trust of the institution. The Assessing Officer shall after verification of the documentary evidences produced by the assessee decide the issue in accordance with law. Appeal of the assessee is accordingly allowed for statistical purposes. - ITA Nos. 5991 & 5992/Del/2016 - - - Dated:- 14-11-2019 - Shri H.S. Sidhu, Judicial Member And Shri O.P. Kant, Accountant Member For the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(a) and 11(1)(b) of the Act and not on the income in the form of voluntary contribution under section 11(1)(d) of the Act. Accordingly, he submitted that order of the Learned CIT(A) might be set aside. 5. On the contrary, the Ld. DR submitted that assessee has not filed any evidences that the voluntary contribution by the donor were with specific direction that they shall form part of the corpus of the trust or the institution, therefore, in absence of any such evidences, order of the Learned CIT(A) is justified in treating the amount received on account of building fund of ₹ 23,62,500/-as income received from property under section 11(1)(a) and 11(1)(b) of the Act, which is required to be utilised as minimum prescribed percentage for charitable purposes. 6. We have heard the rival submission and perused the relevant material on record. The assessee contended that development fund is charged from the students for development of the infrastructure of the society/college/institution for construction of the building and purchase of capital asset. The assessee submitted that this fund is part of the corpus fund of the society and has been shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not to the Income Expenditure Account, it has, as per provisions of section 11 not applied the income for educational purposes. It seeks to accumulate 85% of this income for application to educational purposes in a later year. In such circumstances it has to fulfill to following conditions laid down in section 11(2) of the Income Tax Act: a) The trust is to give a notice to the Income Tax Officer specifying the purposes for which income is been accumulated and the period of accumulation. b) The income so accumulated is to be invested in Government or other approved securities or deposited in Post Office Savings Banks, scheduled banks, co-operative banks and approved financial corporations. 4.7 The appellant, although claiming exemption u/s 11 has not furnished any evidence that it has fulfilled the aforesaid conditions specified in section 11 for claim of exemption for the above accumulated amount. The case of OBIT vs. Shanti Devi Progressive Educational Society (2012) 340 ITR 320 (Del) quoted by the appellant does not help the appellant as that judgement has been rendered in the context of exemption u/s 10(22) of the I.T. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come is finally set apart for application to such purposes in India, to the extent to which the income so set apart is not in excess of fifteen per cent of the income from such property; ( c ) income derived from property held under trust- ( i ) created on or after the 1st day of April, 1952, for a charitable purpose which tends to promote international welfare in which India is interested, to the extent to which such income is applied to such purposes outside India, and ( ii ) for charitable or religious purposes, created before the 1st day of April, 1952, to the extent to which such income is applied to such purposes outside India: Provided that the Board, by general or special order, has directed in either case that it shall not be included in the total income of the person in receipt of such income; ( d ) income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust or institution. 8. It is evident from section 11(1)(d) of the Act that there is no condition of prescribed amount of application of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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