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TMI Blog2025 (2) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... sed for Assessment Year 2012-13 and 2014-15 on 31/12/2014 and 29/11/2016 by computing the income at Rs. 91,42,842/- and Rs. 1,49,63,082/- respectively as against the 'NIL' income declared by the Assessee. Aggrieved by the respective assessment orders, the Assessee preferred the Appeals before the Ld. CIT (A). The Ld. CIT(A) vide order dated 22/11/2018 held that one time life membership fee received by the Assessee are not voluntarily contributions and the same is revenue receipt and upheld the disallowance made by the A.O. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeals. 3. None appeared for the Assessee, the registry sent several notices which are gone in vain. Though the Vakalatnama has been filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant can be treated as corpus donation or is revenue in nature and is to be added to the income. 4.3 With regard to membership fees or subscription, the issue is not whether such receipts would be revenue or capital in nature to decide whether these can be considered as part of the corpus donations which are exempt under section 11(1)(d). What is exempt under section 11(1)(d) is income in the form of voluntary contributions made with a specific direction that they shall form a part of the corpus. Hence what is to be decided is whether receipts on account of membership fees are voluntary or not and not whether such receipts are revenue or capital in nature. 4.4 In the case of CIT vs Divine Light Mission (supra) relied upon by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by entrants to a society or institution as a condition precedent to their membership and as the price of admission to the privileges and benefits of the society or institution are given under a contract and are not voluntary. In view of the Bombay High Court, membership and subscription amounts received by the assessee-trust/society from its members cannot be characterized as voluntary contribution within the meaning of the expression "fund" in section 12 of the Income-tax Act, 1961. 16. Thus there is a distinction between voluntary contribution and subscription. When a sum is paid in the nature of gift or a gratuitous payment to the trust without any consideration it would be considered as voluntary contribution. Subscription is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f money, that is to say, the subscriptions from its members arose directly and substantially from that of organization. In the absence of organization, there would have been no question of subscriptions and following the Division Bench judgment of the Bombay High Court in the case of Cotton Textiles Export Promotion Council (supra), we are of the opinion that the subscription is to be considered as income derived from property held under trust. 26. Hence it is clear that the subscription is to be treated as income and exempted under section 11 of the Act." 4.6 In view of the discussion above it is held that the life and institutional membership fees received are not voluntary contributions. Hence whether or not they have been given with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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