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TMI Blog2020 (4) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... ation received by the assessee-trust towards corpus fund. 3. The facts of the case in brief are that the assessee has received following donations in various assessment years totaling to Rs. 33,80,000 :- Sl. No. Name of the Trustees 2005-06 (FY) 2006-07 (FY) 2007-08 (FV) Total 1. E.Abdurahim 6,00,000 4,90,000 120,20,000 21,10,000 2. P.Laila 6,00,000 -- 1,70,000 7,70,000 3. E.Raheema 2,50,000 -- -- 2,50,000 4. E.Rahana 2,50,000 -- -- 2,50,000 Total 17,00,000 4,90,000 11,90,000 33,80,000 3.1 The Assessing Officer was of the opinion that out of the total amount of Rs. 33,80,000 received in above three assessment years, a sum of Rs. 8,80,000 was unexplained income in the hands of the assessee for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2007-2008 relevant to the present assessment is Rs. 10.20 lakh by Sri.E.Abdurahim and Rs. 1,70,000 by Mrs.P.Laila. The aggregate is Rs. 11,90,000. These trustees had already contributed during the previous year/years by way of corpus donation and had sufficient source for making such donation which had been accepted for those years. The sum of Rs. 11.90 lakh received as Corpus donation for the financial year 2007-2008 is explained as per letter dated 20.9.2011. The above document was also considered by the A.O. However, on an ad-hoc basis, Rs. 8.80 lakh was treated as assessable income. The confirmation letters were filed by Shri E. Abdurahim and Smt.P. Laila. They have explained the source for the corpus donations through letter da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. for prior years and bank statements of the Trust for prior years are submitted separately. 3.4 As regards the income tax assessment particulars of the Trustees, the learned AR submitted that the assessee has clarified that the Trustees are not having any taxable income and are not assessed to income tax. However, their PAN are furnished below :- (i) Abdurahim BLKPA8641M (ii) Laila ALUPL1816A (iii) Rehana E BIYPR6849F (iv) Raheema E ABKPE9768K 3.3 The learned AR further submitted that it may be seen that the surplus income over expenditure for the asst. years 2006-07, 2007-08 and 2009-10 was allowed as exemption u/s.10(23C)(iiiad) and the assessable income is treated as Nil. For this year also, this was considered as exempted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/s. 10(23C)(iiiad) would apply to the surplus and accordingly, is eligible for exemption. Accordingly, no part of the receipt is taxable: ACIT Vs. Shiksha Samiti : (2015) 38 ITR (Trib.) 616 (Delhi.). 4. The learned Departmental Representative, on the other hand, besides supporting the orders of the authorities below, submitted that the assessee is trying to do was to launder its unaccounted income by converting it into donations, which shall not be permitted. 5. I have heard the rival submissions and perused the material on record. It was held by the Hon'ble Supreme Court in the case of S.RM.M.CT.M.Tiruppani Trust v. CIT [(1998) 230 ITR 636 (SC) that under section 11(1) of the Act, every charitable or religious trust is entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the assessee has not filed the confirmation letters from the above two donors. If the assessee is able to file the confirmation letters stating that it was received the amount as donation towards corpus fund of the assessee-trust, then there cannot be any application of section 68 of the Act. Being so, if there is a disclosure of this income in the hands of the assessee as corpus fund and applied the same is for charitable purposes for which the assessee-trust is created, and also the assessee-trust is having due registration u/s 12A of the Act, the Assessing Officer cannot invoke the provisions of section 68 so as to sustain the addition. Accordingly, in the interest and equity, I remit the entire issue under dispute to the files ..... X X X X Extracts X X X X X X X X Extracts X X X X
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