TMI Blog2022 (4) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... issed the books of account, which depict all the donation entries. AO after making local enquiries, came to an assumed conclusion that such donations were in the nature of revenue receipts. On confronted for the alleged local enquiry details to be examined by the assessee, the AO failed to furnish such local enquiry details nor during the appellate proceedings, the details were parted with the assessee. Therefore, in the context of the above, the assessee was deprived of all principles of natural justice and additions were made behind the back of the assessee. Statement of AO in the assessment order that AR has admitted that one has to make compulsory donation while taking hall on hire was denied by the AR and the same is made clear in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he impugned order of assessment is bad in law and void-ab-initio as assessment was concluded much opposed to he principles of natural justice as additions were made behind the back of the assessee and thus, the assessment order requires to be annulled. 2.2 Without prejudice to the above, the Hon'ble CIT[A] grossly erred in upholding the Orders of learned AO who by Order treated the capital receipt received in the form of Donation to Building fund as revenue receipt to the extent of ₹ 52,39,790/- and thus impugned additions requires total deletion as AO has no sanction under law to exceed his jurisdiction. 2.3 the Hon'ble CIT[A] grossly failed to appreciate that the provisions of section 11(1)(d) of the Act in the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment for Mysore City and of general public at large, without any discrimination of cast, creed or religion. For the assessment year 2009-2010, the return of income was filed on 09.09.2009 declaring a loss of ₹ 6,03,802. The assessment was reopened by issuance of notice u/s. 148 of the Act and reassessment was completed vide order dated 31.03.2016 u/s. 143(3) r.w.s. 147 of the I.T. Act. In the impugned reassessment, the AO held that the activities of letting out of halls has been accounted in the guise of donation and the AO after making local enquiries, treated the entire donation as a revenue receipt (the assessee had treated the donation towards building fund in total amounting to ₹ 52,39,790 as corpus donation). Further, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is that voluntary contribution have to be made with a specific direction. However, it was held by the Hon'ble Court that the law does not require the direction should be in writing. 7.1. The Mumbai Tribunal in the case of Bank of India Retired Employees Medical Assistance Trust v. ITO reported in (2018) 172 ITD 78 had held that the corpus donation received by the assessee-trust has to be applied for specific purpose for which respective fund was created and would be treated as a capital receipt. Therefore, the same cannot be brought to tax despite the fact in that case the assessee-trust was not registered u/s. 12A of the I.T. Act. 7.2. In the instant case, the assessee has furnished the details of the corpus fund, details of fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO. The AO is directed to come out with the details how he has come to the conclusion that the hall rents have been accounted in the guise of donation. The assessee is directed to cooperate with the AO and furnish the necessary documents for expeditious conclusion of the assessment. It is ordered accordingly. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. ITA Nos. 1548 1549/Bang/2018 (A.Ys. 2010-2011 2011-2012) 9. Both the parties have agreed that the issue raised in these appeals are identical to the issue adjudicated by us for assessment year 2009-2010. Therefore, for our reasoning mentioned in para 7 to 7.2 (supra), these appeals are also remitted to the files of the A.O. for de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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