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TMI Blog2021 (7) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case to the extent prejudicial to the interest of the appellant and at any rate is opposed to the principles of equity, natural justice and fair play. 2. For that the Commissioner of Income Tax (Appeals) failed to appreciate that the total receipts of Rs. 55,82,6001- as 'Building Fund' was received for a specific purpose being construction of community building. 3. For that the Commissioner of Income Tax (Appeals) failed to appreciate that funds received for construction of community building is a capital receipt and hence cannot be treated as income of the appellant. 4. For that the appellant objects to the levy of interest u/s.234A, 234B and 234C." 3. At the outset, learned AR for the assessee submitted that ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of Rs. Nil. The return of income filed by the assessee has been processed u/s.143(1) of the Income Tax Act, 1961, by CPC, Bengaluru and determined total income of Rs. 55,82,600/- by making additions towards disallowance of donations received amounting to Rs. 55,82,600/-. The assessee has filed appeal against intimation issued u/s.143(1) of the Act, before the first appellate authority and contended that while processing return u/s.143(1) of the Act, only prima-facie adjustments can be made, however, no addition can be made for disallowance of corpus donations. The assessee further contended that corpus donations received by any trust or institution is excluded from the income derived from property held under the trust u/s. 11(1)(d) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, because they assume nature of capital receipt and hence, it is outside scope of income. The AR for the assessee referring to financial statement of the assessee submitted that the assessee has received donations to the specific purpose of construction of building and said donation has been used for construction of building, therefore, same is outside the scope of income of the trust. The AR further relied on the following decisions:- 1. Shree Jain Swetamber Deharshar Upshraya Trust C/o. Anoopchandji Karnava Vs. ACIT (2017) 4 TMI-765 (Mum) 2. ITO Vs.Serum Institute of India Research Foundation (2018) 169 ITD 271(Pune) 3. Bank of India Retired Employees Medical Assistance Trust Vs. ITO(Exemption) 2018 172 ITD 78(Mum) 4. Chandrapra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to income of any trust or institution, unless such trust or institution fulfill certain conditions. As per said section one of the conditions for claiming benefit of exemption u/s. 11 & 12 of the Act is registration of trust under sub-section (aa) of the Act . From conjoint reading of the above provisions, it is very clear that income of any trust including voluntary contributions received with a specific direction is not includable in the total income of the trust, if such trust is registered u/s.12A / 12AA of the Income Tax Act, 1961. In other words, conditions precedent for claiming exemption u/s.11 including for voluntary contributions is registration of trust u/s.12A of the Income Tax Act, 1961. This principle is supported by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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