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TMI Blog2022 (4) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 19 crore cannot be added as additional income of the Trust since exemption on corpus donation is allowed on purchase of land, as it is a purchase of capital asset. This Court also finds that there is no ground of appeal either before the ITAT or before this Court challenging the concurrent finding of the CIT(A) and the ITAT that the substance of the transaction was that the corpus fund had bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J U D G M E N T MANMOHAN, J (Oral): C.M.No.19919/2022 Keeping in view the averments in the application, delay in filing the present appeal is condoned. Appeal is taken on record. Accordingly, the application stands disposed of. ITA No.128/2022 1. Present appeal has been filed challenging the order dated 03 rd September, 2019 passed by the Income Tax Appellate Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate the real nature of the expenditure incurred from general reserve account and grant exemption. According to him, Section 11(1)(d) does not permit exemption in cases where donation received is transferred from corpus to general reserve even if the nature of expense incurred from general reserve is charitable in nature. 4. A perusal of the paper book reveals that both CIT(A) and ITAT have set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eesh Charitable Trust vs. Income Tax Officer, C Ward [(1975) 98 ITR 557(AII)], which has been quoted by the appellant in the present appeal. The relevant portion of the Allahabad High Court judgment is reproduced hereinbelow:- 18. Normally, if a charitable trust mikes a gift of property which constitutes its own capital or corpus, it will be income in the hands of the receiving trust. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g trust. There is no law which prohibits such a transaction. A bilateral contract to that effect is perfectly valid and enforceable. If, in spite of it, the receiving trust spends the donation as if it were its income, the receiving trust would be guilty of misapplication of its assets and could be restrained in suitable proceedings from committing breach of trust. 6. Consequently, this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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