TMI Blog2023 (12) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... funds and in fact the assessee trust have transferred the donation in the event for which it was received in respect of directly credited the fund in the balance sheet, the assessee has first credited it to income and expenditure account and subsequently transferred the said fund to the fund account for which it has received the said amount. In the balance sheet also, the same is reflected in the specific fund i.e. fund related to Milan Mandir Building Fund. Such donation received for the specific purpose i.e. Milan Mandir Building Fund and also invested for the said purpose/said fund as per the provisions of section 11(1)(d) r.w.s. 11(5) in the schedule bank for which the assessee has submitted the bank account therefore this aspect was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only for the genuine reasons stated as above. It is also submitted that the Appellant has a good case on merits and would be put to great loss and hanship if the delay is not condoned. Considering the genuine reason and in the interest of justice, your honor is requested to condone the delay and adjudicate the Appeal. 3. The Hon'ble CIT (A) has erred in confirming the addition of Rs 322314 by not allowing the deduction U/s 11(1) of the IT Act. Total amount of the corpus donation is of Rs 669213 (Milan Mandir Building Fund Rs 469613 and Sharda Mandir Building Fund Rs 199600), which is for the specific purpose, is not to be included in the Total Income as per the provisions of Section 11(1)(d) of the IT Act. 4. Ld CIT(Appeal) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the year under consideration, the trust received interest income, Wadi rent income and donation. The Trust has shown the gross receipt of Rs. 23,12,660/- and has applied amount of Rs. 13,17,418/- for the object of the trust. The Assessing Officer further observed that assessee has shown only interest income of Rs. 2,39,088/- but has not shown difference amount of income of Rs. 20,73,572/- in respect of rent, donation in cash or kind and income from other sources. After taking cognizance of the reply, the Assessing Officer added difference amount of income of Rs. 20,73,572/- to the total income of the assessee. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The ld. CIT(A) dismissed the appeal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of Rs 469613. 2. Trust has received the Donation of Rs 469613 and credited in the Income Expenditure Account under the Head Donation in cash or kind and subsequently, it is transferred to the Milan Mandir Building Fund, as the said donation was received for the Milan Mandir Building Fund. 3. Ld CIT (A) has treated this donation as the application of the fund stating Merely transferring the funds to other funds without actually spending the money is in violation to the provisions of section 11(1) of the Income Tax Act, 1961. In other words, Earmarking the funds would not suffice the statutory requirement of law In fact, this is not the case of transferring the funds to other funds. We have just transferred the donation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilan Mandir Building Fund. The assessee submitted that this is not case of transferring the funds to other funds and in fact the assessee trust have transferred the donation in the event for which it was received in respect of directly credited the fund in the balance sheet, the assessee has first credited it to income and expenditure account and subsequently transferred the said fund to the fund account for which it has received the said amount. In the balance sheet also, the same is reflected in the specific fund i.e. fund related to Milan Mandir Building Fund. Such donation received for the specific purpose i.e. Milan Mandir Building Fund and also invested for the said purpose/said fund as per the provisions of section 11(i)(d) r.w.s. 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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