9911796707
TMI Blog2025 (2) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... essee.
As has been held in the case of CIT vs Divine Light Mission [2004 (4) TMI 25 - DELHI HIGH COURT] such receipts are income from property held under trust which the AO has considered and has allowed set apart of income upto 15%. The only ground of appeal raised is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... available on record. In both the above Appeals the only question arose for consideration as to whether one time membership fees as non corpus funds is eligible for exemption u/s 11 (1)(d) of the Act or not. The Ld. CIT(A) decided the issue against the Assessee in both the Appeals and upheld the Assessment Orders, for the sake of convenience, the findings of the Ld. CIT(A) for Assessment Year 2012-13 are reproduced as under:- "4. Determination 4.1 The only ground of appeal challenges the addition of one time life membership fees as non-corpus fund and not eligible for exemption under section 11(1)(d). 4.2 I have considered the assessment order and the submissions of the appellant. The issue for consideration is whether the one time li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese tests should be satisfied for contribution. However, when a person pays membership fee or subscription to a society or a trust, he does not make a gift of the membership fee or subscription amount to the society. The amount of subscription paid by a member to the society can never be considered as gratuitous payment made by the member to the society or as a payment without consideration. 15. In the case of Trustees of Shri Kot Hindu StreeMandal's case (supra), High Court of Bombay examined a similar question. Voluntary contributions do not mean annual subscriptions. It amounts to gift made from disinterested motives for benefit of others. In Society of Writers to the Signet v. IRC [1886] 2 TC 257 (C Sess), the Court held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or duties and that all depends on the nature of the trust and terms and conditions of the contract. 18. Sometimes members are getting certain privileges or rights. Therefore, such subscription fee has been considered as income of institutions." 4.5 The Hon'ble Court in the case of CIT vs Divine Light Mission (supra) have further held that the membership fees have to considered as income derived from property held under trust and, therefore, is exempt under section 11. The relevant extract of the judgement is reproduced below: "25. In view of the judgment of the Division Bench of the Bombay High Court in the case of Cotton Textiles Export Promotion Council (supra), we are of the view that the property held under trust was the organ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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