2018 (5) TMI 1028 - SCH - Income Tax

Treating the interest on corpus funds received as corpus donations u/s 11(1)(d) - Whether voluntary contributions received by a trust with specific direction that they shall form part of the corpus includes interest accruing/credited on deposits from above donations? - Held that - SLP dismissed. HC Order confirmed 2017 (9) TMI 1232 - KERALA HIGH COURT HC has held that reading of Section 11 shows that subject to the provisions of Sections 62 and 63, the incomes enumerated therein shall not be included in the total income of the previous year of the person in receipt of the income. The interest earned on the contributions already made by the donors would also partake the character of income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the trust. If that be so, conclusion is irresistible that the Tribunal has rightly held that the interest earned would qualify for exemption under Section 11(1)(d) of the Income Tax Act. No question of law

Summary

The Supreme Court dismissed the special leave petitions as it found no grounds to interfere with the impugned order(s). Pending applications were also disposed of.