9911796707
TMI Blog2013 (11) TMI 1594X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 of the Income Tax Act, 1961. 2. The assessee is a public charitable trust, registered under section 12AA of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for brevity) and it is also recognized under Section 80G of the Act. The assessee trust allowed its assets, vehicles and buildings etc. to be used by Bharatiya Samskriti Vidya Peeta, free of consideration and the said association is running an educational institutions in the premises which is owned by the assessee trust. It is also making use of the assets of the trust for the purpose of education. 3. The assessee has collected donations from various persons and also issued receipts showing that the said amounts were received towards building fund. Therefore, they cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s fund. When once the institution in question is eligible for exemption as a Charitable institution under section 11 and when it is also not disputed that the donors in question have received from the donee against the voluntary contribution so made, only for the building fund and the donation may the treated as corpus fund. Therefore it dismissed the appeals. Aggrieved by the said order of the Tribunal, the Revenue has filed these appeals for five different years. 5. Learned counsel for the revenue assailing the impugned order contended that to get an order of exemption under Section 11 as a corpus fund, the assessee has to establish that the said voluntary contributions are made with a specific directions that they shall form part of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities rightly held that Section 68 of the Act is not attracted as the amounts are accounted for and shown as income and as the said income is shown as having been paid towards the corpus fund of the trust and the assessee is entitled to the said benefit. At the time of admission of these appeals, the following substantial question of law were raised. (a) Whether the appellate authorities were right in holding the donations of Rs. 21,46,033/- received by the assessee would not be brought to tax under section 68 of the I.T. Act as the assessee failed to disclose the names of the donors and further held that the said donations are utilized as corpus towards building fund? (b) Whether the Appellate Authorities were right in not taking into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessee was issuing receipts for the donations received in excess of Rs. 1,000/- and subsequently, they are issuing receipts for the amounts received above Rs. 5,000/-. This procedure has been accepted by the department. Now in the order of the assessment, the assessing officer has denied exemptions on the ground that there is no specific direction from the donor to the donee to utilize the amounts given for the building purpose, i.e., it was given towards the corpus of the trust. The reasons given are that the particulars of the donors are not mentioned and hence, the assessee is not able to give the full particulars of the donors. There is nothing to show that these donors have given any specific directions to utilize the fund as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter, a separate account is maintained for the said amount. Form this, it could be inferred that there is a 'Specific direction by the donor'. The said amount is used as part of the corpus. It may be possible that, in a given case, the provision may be abused and unaccounted monies could be converted into corpus fund without furnishing the particulars of the person who are contributing and to avoid tax liability to have benefit of exemption, but that is a question of fact. The court has to decide on the material available on record, whether the said provision is abused in the aforesaid manner or not. In the absence of any material to show that the said provision is abused and if it is demonstrated that the educational institution has collec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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