9911796707
TMI Blog2022 (4) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... concise grounds of appeal: - "1. Amount of Rs. 8,99,811, received as Corpus Donation is not taxable even when the appellant trust is not registered under section 12AA since the donation received is specifically for corpus to purchase a Dargah/Masjid. 2. The amount of rent received from hire of buildings of Rs. 4,87,924, be taxed under the head "Income From House Property" and not as "Income From Other Sources", as the trust is not registered under section 12A and is, therefore, an A.O.P." 3. The issue arising in ground No.1 raised in assessee"s appeal is with regard to taxability of corpus donation received by assessee trust for a specific purpose. 4. The brief facts of the case pertaining to this issue as emanating from the record a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed return of income claiming exemption under section 11 of the Act. While filing the return of income for relevant assessment year, an amount of Rs. 8,99,811 collected as corpus donation for purchase of Masjid/Dargah was also offered as income. Accordingly, the assessee submitted that the corpus donation of Rs. 8,99,811 is in the nature of "capital receipt" and thus not taxable in the hands of the assessee trust irrespective of not being registered under section 12A of the Act. 6. The CIT(A) vide impugned order dated 16.07.2019, though admitted that assessee is not registered under section 12 A of the Act and thus no benefit of exemption could be allowed to the assessee under section 11 of the Act, rejected the contention of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgah and (iv) deed of conveyance for purchase of property, which were also filed before the CIT(A). 8. On the other hand, Shri Chandra Vijay, learned Departmental Representative ("learned D.R.") by vehemently relying upon the order passed by the CIT (A) submitted that the Assessing Officer proceeded on the basis of claim made by the assessee in its return of income. 9. We have heard the rival submissions and perused the material available on record. In the present case, it is evident from the record that there is no dispute that the assessee is trust registered with "Maharashtra State Board of Wakf". It has also not been disputed that assessee is not registered under section 12A of the Act and thus not entitled to any benefit under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld the order passed under section 263 of the Act. The Tribunal further noted that the decisions, as relied upon by the taxpayer, are not applicable, as in the facts of those cases the corpus donation received by the trust was for utilisation for specific purposes and thus was accordingly held not taxable being "capital receipt" in nature despite the fact that the trust was not registered under section 12A of the Act. Thus, in view of the above, the reliance placed by CIT(A) on the decision of Co-ordinate bench of Tribunal in Bank of India Retired Employees Medical Assistance Scheme (supra) to deny the claim made, for the first time, by the assessee in the present case is erroneous and cannot be sustained. 11. Further we find that the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Assessing Officer. In view of the above, we deem it appropriate to set aside the order passed by the CIT(A) and remand this issue to the file of CIT(A) for de novo adjudication after necessary verification of all the details / documents in respect of claim of the assessee. We further direct that if it is found that donations were received with respect to corpus of the trust for the purpose of purchase of property/Dargah then to that extent the same be not taxed being in the nature of "capital receipt". Needless to mention that no order shall be passed without affording reasonable opportunity of hearing to the assessee. Accordingly, ground No. 1 in assessee"s appeal is allowed for statistical purpose. 13. The issue arising in ground N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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