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TMI Blog2020 (3) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... isposed of by way of this consolidated order. ITA No.558/VIZ/2018 2. Facts of the case in brief are that assessee is a registered society registered under the Societies Registration Act, filed its return of income by declaring income of Rs. 25,960/-. The assessee-society has received corpus donations of Rs. 3,33,11,930/- and shown in the balance sheet under the head 'corpus fund'. During the course of assessment proceedings, the Assessing Officer has observed that the assessee has received donations/voluntary contributions to the extent of Rs. 3,33,11,930/-. During the A.Y. 2014-15, the assessee has not filed the 12A registration certificate and therefore the provisions of section (11)(1)(d) donations received are exempt from tax only if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT, Bangalore Bench in the case of ITO Vs. Vokkaligara Sangha [(2015) 44 CCH 509 (Bang. Trib.)] has held that assessee has received corpus donations are outside the scope of section 2(24)(iia), the same cannot be brought to tax even the trust is not registered u/sec. 12AA of the Act and allowed the appeal of the assessee. 4. Being aggrieved, the Revenue is in appeal before this Tribunal. 5. Ld.DR relied on the order of the Assessing Officer, whereas ld.AR strongly supported the order of the ld. CIT(A). 6. We have heard both the sides, perused the material available on record and orders of the authorities below. 7. The assessee is a society registered under the Societies Registration Act. The year under consideration the assessee has re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art once the assessee has submitted that the donations received voluntarily for specific purpose, it is the duty of the Assessing Officer to examine who is the person donated and what purpose he has donated all the details has to be examined and thereafter has to decide the donations are in the nature of corpus donations or income of the assessee, without doing simply rejected the explanation. However, on appeal ld. CIT(A) by considering the explanation of the assessee and by following the decision of the Hon'ble Bombay High Court in the case of R.B. Shriram Religious and Charitable Trust (supra) and also the decision of the ITAT, Chennai Bench in the case of Indian Society of Anaesthesiologists (supra) and also the decision of the ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpus donation. The amendment carried out is that, the word voluntary contribution has been brought under section 2(24)(iià) of I.T. Act. The effect of amendment is that every voluntary contribution partakes the character of income. Corpus donation is a Voluntary contribution, therefore, constitutes income under section 2(24)(iia) of I.T. Another amendment was made in section 11(1)(d) by the same Act. The effect of the amendment is that deduction will be allowed under section 11(1)(d) in respect of Voluntary contribution with specific direction that they shall form part of the corpus of the trust or institutions. Prior to this amendment, voluntary contribution with a specific direction, which is also known as corpus donation was never ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court held that even ignoring the amendments to section 12, which means that even before the words appearing to parenthesis in the present section 12, it cannot be held that voluntary contributions specifically received towards the corpus of the trust may be brought to tax. The aforesaid decision was followed by the Hon'ble Bombay High Court in the case of Trustees of Kasturbai Scindia Commission Trust 189 ITR 5. In the present case, the A.O. on evidence has accepted the fact that the impugned donation has been received towards the corpus of the endowment. 6.4. The ITAT, Chennal in Indian Society of Anaesthesiologists V. ITO in decision reported in (2014) 47 taxmann.com 183 (Chennai-Trib.) held that specific funds created for ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of appellate proceedings. 6.7 Reliance is placed on the decision of Hon'ble ITAT Pune Bench 'B' in the case of ITO (Exemptions), Ward-2, Pune Vs. Serum Institute of India Research Foundation wherein it is held that corpus specific voluntary contribution being in nature of capital receipt, are outside scope o income under section 2(24)(iia) and, thus same cannot be brought to tax even in case of trust not registered u/s. 12A / 12AA of the I.T. Act. 6.8 In view of the above and as the appellant got registered u/s.12AA of the Act and as the donations/voluntary contributions received of Rs. 3,33,11,930/- by the appellant society are of Corpus and Capital nature, same are to be treated as exempt from tax liability, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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