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TMI Blog2012 (10) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... received in advance has been included so as to arrive to the conclusion that the aggregate receipt is more than 1 crore and therefore the assessee is out of purview of section 10(23C)(iiiad). Nature of contributions - capital in nature - The income has to be computed in a commercial manner even in the case where exemption is denied and the capital receipts cannot be taken as income of the assessee in case the Assessing Officer is satisfied that the contributions are capital in nature. Incidentally, the Assessing Officer is required to verify the figure as donation received - all the three appeals of the assessee under consideration are treated as allowed for statistical purposes. - ITA No.1144 to 1146/Hyd/2011 - - - Dated:- 18-7-2012 - SHRI CHANDRA POOJARI AND SMT. ASHA VIJAYARAGHAVAN, JJ. Appellant by : Shri S.Rama Rao Assessee by : Shri M. S.Rao ORDER Per Asha Vijayaraghavan, Judicial Member: These three appeals filed by the assessee are directed against similar but separate orders of the CIT(A) I, Hyderabad all dated 16.5.2011 for the assessment years 2005-07 to 2007-08. Since common issues are involved, these appeals are being disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying the commercial principle by considering the revenue receipts and revenue expenditure and allow deprecation also. As regards the addition made on account of donation, the assessee submitted that when the assessing officer was denying exemption, the capital receipts could not be treated as income and why they should not be treated as capital receipts is not known. It was submitted that these amounts were received with the specific direction/specific purpose and cannot partake the character of income. While submitting copy of the return with the financial statements, it was submitted that the capital receipts by way of development fund, contributions and donations could not be added as they were received with specific direction that they should be treated as corpus fund or development fund. The CIT(A), however, finding no merit in these contentions of the assessee, confirmed the assessment thus made by the assessing officer, with the following observations- 04.0 I find from the return of income that the appellant had shown excess of expenditure over income of Rs.70,314/-. From the Receipts and Payment a/c., I find that during the year under consideration the appellant had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the CIT(A) during the course of only one hearing has not raised any equerry nor the AO has given any finding that they are not towards corpus fund. 6. We heard both the parties and perused the material on record. It is evident from the impugned orders of the lower authorities that no details about the nature of contributions/donations or the details of the donors were filed along with the return of before the assessing officer or during the appellate proceedings. The assessee has failed to file any evidence to indicate that the donations were received with a specific direction from the donors that the donations should form part of the corpus of the assessee trust. When the assessee claimed a particular receipt as non-taxable, as observed by the CIT(A), onus is on the assessee to prove that the same is not taxable as per the provisions of the Act. Assessee in the instant case has not been able to prove that the contributions received by it are not in the nature of capitation fee collected from students/prospective students or their relatives in the guise of donations. In the absence of any evidence filed by the assessee in that behalf, the assessing officer treated the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... servations- .Further, there is nothing on record to show that the appellant had got the approval u/s. 10(23C)(vi) of the I.T. Act. Thus, for the year under consideration, the aggregate receipt being more than rupees one crore, the appellant is out of the purview of section 10(23C)(iiiad). It is already on record that the appellant did not have the registration u/s. 12A for the year. Accordingly, in the absence of registration u/s. 12A, or approval u/s. 10(23C)(vi), the income of the appellant for the year is required to be taxed. To that extent, I do not find any infirmity in the order of the Assessing officer bringing to tax the income of the trust. 10. Even as for the addition of Rs.37,46,000/-, the CIT(A) observing that neither during the assessment proceedings nor during the appellate proceedings, the assessee could substantiate the same, giving the names of the donors, purpose for which donation was given etc., and also following his appellate order for the assessment year 2005-06, confirmed the addition made by the assessing officer. 11. Aggrieved by the order of the CIT(A), the assessee preferred the present appeal before us with the following grounds:- 1. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case for this year in brief are that for this year, the income assessed is Rs.27,20,510, which includes contribution and donation of Rs.2,75,000 received by the assessee which has been added to the income as per return of Rs.24,45,510, vide order of assessment dated 30.12.2010 passed under S.153A read with S.143(3) of the Act. 15. In the impugned appellate order for this year, the CIT(A) noted as a matter of fact that the gross receipts of the assessee-society for this year exceeded rupees one crore, but there was no approval obtained under S.10(23C(vi), and it is also a fact on record that the assessee did not have registration under S.12A for this year as well. To this extent, according to the CIT(A), assessing officer rightly observed that no exemption is allowable to the trust and the income of the trust is to be treated as business income and taxed at AOP. He however, found force in the contention of the assessee that on denial of exemption on the ground of non-availability of approval under S.10(23C) or registration u/s. 12A, the income is to be computed by applying normal commercial principles. When the assessing officer himself admits in the assessment order that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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