TMI Blog2020 (3) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... onations or income of the assessee, without doing simply rejected the explanation. However, on appeal ld. CIT(A) by considering the explanation of the assessee and by following the decision of the Hon'ble Bombay High Court in the case of R.B. Shriram Religious and Charitable Trust [ 1987 (1) TMI 13 - BOMBAY HIGH COURT] and also the decision of the ITAT, Chennai Bench in the case of Indian Society of Anaesthesiologists [ 2014 (5) TMI 1031 - ITAT CHENNAI] and also Vokkaligara Sangha [ 2015 (8) TMI 920 - ITAT BANGALORE] gave a finding that the voluntary contributions received by the assessee for a specific purpose cannot be regarded as income u/sec. 2(24)(iia) A s the appellant got registered u/s.12AA of the Act and as the donations/voluntary contributions received by the appellant society are of Corpus and Capital nature, same are to be treated as exempt from tax liability, as the principles relating to judicial discipline assume significance and the priority. Accordingly, following the ratios of the judicial pronouncements mentioned supra, it is treated that the donations/voluntary contributions received by the appellant society are outside the taxations, even for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iia) of the Act since they are capital receipts and tied up grants for specific purpose. The Assessing Officer considered the submissions, but not accepted the same and observed that case-laws relied on by the assessee are different. Accordingly, the amount received by the assessee is added to the total income of the assessee. 3. On appeal, ld. CIT(A) by following the decision of the Hon'ble Bomay High Court in the case of R.B. Shriram Religious and Charitable Trust Vs. CIT [(1988) 172 ITR 373]; ITAT, Chennai Bench in the case of Indian Society of Anaesthesiologists Vs. ITO [(2014) 47 taxmann.com 183 (Chennai Trib.)]; ITAT, Bangalore Bench in the case of ITO Vs. Vokkaligara Sangha [(2015) 44 CCH 509 (Bang. Trib.)] has held that assessee has received corpus donations are outside the scope of section 2(24)(iia), the same cannot be brought to tax even the trust is not registered u/sec. 12AA of the Act and allowed the appeal of the assessee. 4. Being aggrieved, the Revenue is in appeal before this Tribunal. 5. Ld.DR relied on the order of the Assessing Officer, whereas ld.AR strongly supported the order of the ld. CIT(A). 6. We have heard both the sides, perused t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siologists (supra) and also the decision of the ITAT, Bangalore Bench in the case of Vokkaligara Sangha (supra) gave a finding that the voluntary contributions received by the assessee for a specific purpose cannot be regarded as income u/sec. 2(24)(iia) of the Act. For the sake of convenience, the relevant portion of the order is extracted as under:- 6. I have considered the submission of the appellant and giver a careful thought. Corpus donation comprises two words viz, corpus and donation. Corpus is a Latin Expression, which means a body or structure. It also means a direction to constitute a body or substance. In common parlance this term is understood as capital sum. This also includes endowment. The expression endowment means bequest, gift. It is an act of endowing which is a capital sum provided and provides for a permanent income. Endowment also means property or money bestowed as permanent fund. In terms of charity, the corpus symbolizes funds to retain its character as a Principal amount. It also denotes the funds earmarked for a specific purpose. The intention of the corpus is that, the funds should not be depleted and it retains its original character of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the trust or institution shall not be considered as income of the trust. In the case of RB. Shriram Religious and charitable Trust v. CIT[19881 172 ITR 373/39 Taxman 28 (Born.) Hon'ble Bombay High Court held that even ignoring the amendments to section 12, which means that even before the words appearing to parenthesis in the present section 12, it cannot be held that voluntary contributions specifically received towards the corpus of the trust may be brought to tax. The aforesaid decision was followed by the Hon'ble Bombay High Court in the case of Trustees of Kasturbai Scindia Commission Trust 189 ITR 5. In the present case, the A.O. on evidence has accepted the fact that the impugned donation has been received towards the corpus of the endowment. 6.4. The ITAT, Chennal in Indian Society of Anaesthesiologists V. ITO in decision reported in (2014) 47 taxmann.com 183 (Chennai-Trib.) held that specific funds created for fulfilling specific objectives for which these separate funds are constituted remain as capital funds as the funds can be used for fulfilling specific objectives for which these funds are constituted and hence to be treated as corpus funds and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
