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TMI Blog2016 (7) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... Vanik Jain Sangh [2002 (7) TMI 34 - GUJARAT High Court] is of the view that a voluntary contribution made with specific direction to form part of the corpus is not treated to be as income. Same appears to be the ratio of hon’ble Delhi high court DIT vs. NASS COM [2012 (5) TMI 204 - DELHI HIGH COURT ] holding that a one time admission fee paid by members to be spent only for acquiring capital asset is a corpus donation not taxable as income. - Decided in favour of assessee. - ITA Nos. 1936 & 1937 /Ahd/2015 - - - Dated:- 29-6-2016 - Shri Pramod Kumar, Accountant Member And Shri S. S. Godara, Judicial Member For the Revenue : Shri P.L. Kureel, Sr. D.R. For the Assessee : Shri M.K. Patel, A.R. ORDER Per S. S. Godara, Judicial Member These two assessee s appeals for A.Y. 2010-11 2011-12, arise from separate orders of the CIT(A)-9, Ahmedabad dated 01- 04-2015 and 06-04-2015 in appeal nos. CIT(A)-9/279/DDIT Exem/2014-15 and CIT(A)-9/283/DDIT Exem/2014-15 ; respectively, in proceedings under section 143(3) of the Income Tax Act, 1961; in short the Act . 2. The assessee s former appeal ITA 1936/Ahd/2015 for assessment year 2010-11 raises the following substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred appeal. It further raised additional submissions therein. The CIT(A) sought a remand report. The assessee appears to have succeeded in filing confirmations of its donors in support of its impugned corpus donations. The Assessing Officer concurred with its stands in his remand report. The CIT(A) still rejects its corresponding grounds raised in the lower appellate order as under:- 2.2 I have carefully considered the submission of the appellant. The appellant during the course of appellate proceedings has submitted that it has already furnished details of donation receipts for verification at the time of hearing before the A.O. The copies of ledger account of corpus fund, receipt of donation containing the details of name and address of donors have also been submitted before the A.O. and all donations are less than ₹ 20,000/-. The appellant submitted copy of donation receipts alongwith submission. The Id CIT(Appeals) visualizing the above facts and in the interest of justice, called for the remand report from the AO to examine the records and to report on the issues. The reply received from A.O. is reproduced hereunder: 2. I have gone through the submission mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid reason A.O.'s office is but compelled to understand and to treat the entire amount received as donations as anonymous in nature u/s.115BBC of the IT. Act, 1961 and taxed accordingly. The appellant furnished the said details very late in spite of given sufficient opportunities with the intent that verification of the same should not take place properly. Some of the Receipts shows that there is no mention that donation has been received for corpus fund. Similarly, No PAN, address and signature on the receipts. Why these details were not given at the appropriate time of assessment, the appellant is silent about this aspect. Hence, I am of the considered view that the remand report cannot be accepted now as additional evidence. Therefore, I am inclined with Id. Assessing Officer that the amount received as donation by the appellant as anonymous in nature. After going through the facts, I am not inclined to agree with the contentions of the appellant and case law relied upon by it. The anonymous donations have been compulsorily taken from the students and that too in cash, who have opted to take admission in the educational institutions run by the appellant. This makes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion fee was in the nature of corpus fund in furtherance of its educational activities object to be treated as corpus funds exempt u/s. 12 of the Act. The Assessing Officer observed in the assessment order that there was no choice left for students parents except to pay the impugned admission fees. He relied on assessee s printed receipt allegedly indicating the same were in the nature of compulsory donation. He would accordingly conclude that the assessee s institution had been established with profit motive. All this discussion led to addition of the impugned admission fees amounting to ₹ 67,80,650/- in question. The CIT(A) confirms the same. 8. We have heard rival contentions. Relevant findings stand perused. We do not deem it appropriate to re-narrate the entire facts relevant to this issue for the sake of brevity. We find from a perusal of the paper book that the assessee-trust passed resolutions for obtaining admission fee separately from its students with specific stipulation that the same would be used in educational funds. The Revenue has not been able to dispel correctness thereof in course of arguments. There is further no evidence that assessee s students or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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