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TMI Blog2021 (7) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... e trust with a specific direction that they form part of corpus of the trust falls within ambit of income of a trust derived from property held under trust and hence, includable in total income of the trust. In this view of the matter and considering facts and circumstances of the case, we are of the considered view that voluntary contribution received by the trust with a specific direction that they form part of corpus of the trust is income of the trust within the meaning of section 11 12 of the Income Tax Act, 1961. We are of the considered view that there is no error in the findings recorded by the learned CIT(A) to confirm additions made by the Assessing Officer towards disallowance of corpus donations - Decided against assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the delay has been filed. The AR further submitted that the assessee could not file appeal within the time allowed under the Act, due to the fact that there was change in counsel for the assessee. Hence, the delay in filing appeal is neither intentional nor willful, but for unavoidable reasons, therefore, delay may be condoned in the interest of advancement of substantial justice. 4. The learned DR, on the other hand, strongly opposing condonation of delay petition filed by the assessee submitted that the reasons given by the assessee do not come within the ambit of reasonable and bonafide reasons, which can be considered for condonation of delay and hence, appeal filed by the assessee may be dismissed as not maintainable. 5. Hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st. The learned CIT(A), for the reasons stated in his appellate order dated 12.03.2019 rejected contention of the assessee and held that conditions precedent for claiming exemption u/s.11 of the Act is registration of trust u/s.12A of the Act and hence, in the absence of registration of trust u/s.12A, exemption claimed towards corpus donations cannot be allowed . Therefore, he opined that there is no error in adjustments made towards corpus donations while processing return u/s.143(1) of the Act. The learned CIT(A) has taken support from the decision of Hon'ble Supreme Court in the case of M/s. U.P.Forest Corporation Another vs. DCIT in Civil appeal No.9432 of 2003 dated 27.11.2007. Aggrieved by the learned CIT(A) order, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the learned CIT(A), submitted that conditions precedent for claiming exemption u/s.11 is registration of trust u/s.12AA of the Act, and hence, in absence of registration of trust u/s. 12AA of the Act, no exemption could be given to corpus donations. 9. We have heard both the parties, perused material available on record and gone through orders of the authorities below. The definition of income as defined u/s.2 of sub-section (24) includes voluntary contribution received by any trust created wholly or partly for charitable or religious purpose. This means, for any assessee, including trust or institution voluntary contribution is income. The provisions of section 11, 12A 12AA, deals with taxation of trust or institution. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Supreme Court has very clearly held that a conjoint reading of section 11, 12 12A makes it clear that registration u/s.12A is a condition precedent for availing benefit u/s.11 12 of the Act. Unless and until an institution is registered u/s.12A of the Act, it cannot claim benefit of section 11 12 of the Act. In this case, trust is not registered u/s.12A / 12AA of the Income Tax Act, 1961. Therefore, we are of the considered view that corpus donations received by the trust with a specific direction that they form part of corpus of the trust falls within ambit of income of a trust derived from property held under trust and hence, includable in total income of the trust. 10. Insofar as various case laws relied upon by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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