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TMI Blog2010 (3) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as corpus donation. On the other hand, the Tribunal has held that the said amount since it has come from third parties the same could have to be treated as income. However, if the said amount is utilised or expended for charitable purpose, then the said amount would be eligible for exemption under section 11(1)(d) of the Act. The Tribunal rightly rejected the claim of the assessee to treat the said amount as corpus donations and has correctly granted the relief under section 11(1)(d) on this aspect of the matter also, substantial questions of law raised in this appeal will have to be answered against the Revenue. - ITA NO 222/04 - - - Dated:- 8-3-2010 - MANJUNATH K. L. and NAGARATHNA B. V. MRS., JJ. Judgment: Mrs. B. V. Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, the said amounts were brought to tax as income by an order dated August 29, 2002. 3. Being aggrieved by the said order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) which was rejected by an order dated March 3, 2007. Being aggrieved by the said order, further appeal was preferred before the Income-tax Appellate Tribunal, Bangalore. The Tribunal however, held that the dominant object of the assessee organisation was charitable in nature and that it had a registration under section 12A of the Act and, therefore, was entitled to all benefits under section 11 of the Act. The said order is under challenge in this appeal by raising substantial questions of law. 4. As far as the amount of Rs. 6,00,747 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Whether the Tribunal committed an error in failing to take into consideration the disallowances made by the Assessing Officer of peak cash deficit of Rs. 6,00,747 corpus donation of Rs. 14,36,500 being contrary to section 11(1)(c) of the Act and Rs. 1,33,12,616 as excess income over expenditure and consequently, recorded a perverse finding which would have clearly established that the assessee was not entitled to exemption ?" 5. However, after hearing the learned counsel on both sides and on their submissions only the following substantial questions of law are required to be answered in this appeal. "1. Whether the Tribunal failed to examine and record a finding as held by the Assessing Officer that the assessee had received don ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the donations were made and, therefore, the Assessing Officer was right in holding that in the absence of the identity of the alleged donors and the same being reflected in the books of account of the assessee, the said amount would not be entitled to any deduction under the Act. He, therefore, submits that the Tribunal was not justified in reversing the finding on these aspects of the matter and that the substantial questions raised in this appeal would have to be answered in favour of the Revenue. 7. Per contra, learned counsel for the respondents has submitted that the donations made to an extent of Rs. 28,30,094 cannot be attributable to the allotment of any seat to the students or that there is any violation committed by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, we are unable to accept the said contention of the counsel for the Revenue that the donations received to an extent of Rs. 28,30,094 during the said period is in violation of the Prohibition of Capitation Fee Act, 1984, and, therefore, the trust had acted opposed to public policy, consequently, was not entitled to be treated as a charitable organisation. The Tribunal was hence justified in reversing the findings of the Assessing Officer and the first appellate authority on this aspect of the matter and granting relief to the assessee, which is our view is just and proper. 9. As far as the amount of Rs. 14,36,500 which is claimed by the assessee in the name of corpus donation is concerned, though the assessee was not able to give th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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