9911796707
TMI Blog2024 (7) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of assessee. - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS ASTHA CHANDRA, JUDICIAL MEMBER For the Assessee : Shri K.V.S.R Krishna, CA For the Department : Shri T. James Singson, CIT-DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the Revenue is preferred against the order of the ld. CIT(A) - 40, Delhi dated 28.11.2019 pertaining to A.Y. 2009-10. 2. The solitary grievance of the Revenue is that the ld. CIT(A) erred in treating Rs. 44.25 crores as capital receipt instead of corpus donation since, during the year under consideration, as the assessee was not registered u/s 12A of the Income-tax Act, 1961 [the Act, for short] and, therefore, not eligible for exemption u/s 11(1)(d) of the Act. 3. Briefly stated, the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial decisions, the ld. CIT(A) observed that the impugned receipt is a capital receipt which is to be kept on permanent basis and only accretions are to be used. The utilization of the grant is governed by the directions of the donor and since grant was not in the form of a corpus donation but was a specified grant given for utilization as per the directions of the donor, hence was a capital receipt and, accordingly, directed the Assessing Officer to delete the impugned addition. 8. Before us, ld. DR strongly supported the findings of the Assessing Officer. The ld. DR drew our attention to the decision of this Tribunal by which the co-ordinate bench has upheld the order of the CIT u/s 263 of the Act and read the operative part pointing out s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion being in the nature of capital receipt are not chargeable to income tax. So far as section 2(24)(ii ) is concerned, this section has to be read in the context of the introduction of the present section 12. It is significant that section 2(24)(iia) was inserted w.e.f. 01-04- 1973 simultaneously with the present section 12. Section 12 makes it clear by the words appearing in parenthesis that contributions made with a specific direction that they should form a part of the corpus of the trust or institution shall not be considered as income of the trust. In the case of RB. Shriram Religious and charitable Trust v. CIT[19881 172 ITR 373/39 Taxman 28 (Born.) Hon'ble Bombay High Court held that even ignoring the amendments to section 12, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d-/purpose of funds utilized by the appellant society as to whether they are of Corpus and Capital Receipts or not or as to whether they have been utilized for the specified purposes. In fact, he had only treated such donations/voluntary contributions received by the appellant society as liable to tax during the period prior to the Registration of the appellant society u/s.12AA of the Income-tax Act, 1961. The appellant got registered its Society u/s.12AA of the Income-tax Act, 1961 before the concerned authority of the Income Tax Department and the Order granting Registration u/s.12AA of the I.T. Act, 1961 was passed by the Commissioner of Income Tax (Exemptions), Hyderabad on 25/09/2017 and copy of the same is filed by the appellant durin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
