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TMI Blog2025 (3) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... ble institution u/s 12AA.
The "Income" under Section 2(24)(iia) of the Act would not form part of total income u/s 11 and 12A of the Act only if the assessee is registered or filed an application before the competent authorities, the condition of which is absent in present case.
In the background of these facts, provisions of the Act viz. Sections 2(24)(iia), 10(23), Sec. 11 & 12A , Explanatory Notes to the provisions of the Finance (No.2) Act, 2014 - Circular No. 01/2015, dated 21.01.2025 and the judgments, we, therefore, decline to interfere with the order of the ld. CIT(A). Appeal of the assessee is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the insertion of the proviso to Section 12A(2) of the Act has to be construed as retrospective in operation. 7. The Ld. AR also submitted that the assessee had not claimed any exemption u/s 11(d) of the Act, assuming that the donation received for specific purpose was capital receipt which was also utilized as per the documents already produced before the Assessing Officer, as mentioned in paragraph No. 5.4 of the Assessment Order. 8. The Ld. DR, on the other hand, supported the orders of the lower authorities and argued that the assessee was not a registered trust during the relevant assessment year. He further contended that the assessee's claim of capital receipt could not be accepted, particularly since the assessee had sought exemption under Section 11(1)(d) of the Act in its return of income. The DR emphasized that the general assertion of a capital receipt could not be upheld in all circumstances, as even for charitable trusts, if corpus donations are received, they must be utilized for specific purposes. 9. Heard both the parties and perused the material available on record. 10. We find that, during the year the assessee was an unregistered trust and no ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.] (c) [***] [(2) Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made.] 10.1 We have also gone through the explanatory notes to the provisions of the Finance (No.2) Act, 2014, of Circular no. 01/2015 dated 21.01.2025, which read as under :- "8. Applicability of the registration granted to a trust or institution to earlier years 8.1 The provisions of section 12A of the Income-tax Act, before amendment by the Act, provided that a trust or an institution can claim exemption under sections 11 and 12 only after registration under section 12AA of the said Act has been granted. In case of trusts or institutions which apply for regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appeal before us pertains to 2012-13 and also in the absence of any evidence to prove that the donations received are for corpus. We have also gone through the judgment of Co- ordinate bench of Kolkata in the case of Sree Sree Ramkrishna Samity Vs. DCIT (ITA No.1680/Kol/2012, order dated 09.10.2015). We find that in that case the corpus donations received were meant for specific purpose and utilized for construction of old age home. There was no such evidence in the instant case. In the cases referred by the assessee, we find that the donations were received for specific purpose and were dealt u/s 2(24)(iia) of the Act. 10.3 For the sake of ready reference, the provisions of Section 2(24)(iia) of the Act as to what constitute "Income" is as under:- "(iia) voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes [or by an association or institution referred to in clause (21) or clause (23), or by a fund or trust or institution referred to in sub-clause (iv) or sub-clause (v) [or by any university or other educational institution referred to in sub-clause (iiia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a fact that the appellant is not a registered trust. Hence, the concept of corpus donation for which exemption is available u/s 11(1)(d) of the I.T Act, 1961 is not applicable to the appellant. The appellant cannot state that the corpus donation are not taxable in its hands. Further, the contention of the appellant that it had now obtained registration certificate and hence, the benefit of exemption u/s 11(1)(d) also cannot be accepted because the registration certificate is applicable from A.Y.2020-21 onwards. The appellant's contention of capital receipt cannot be accepted because appellant in the return claimed exemption u/s 11(1) (d) of the Act and further during the assessment proceedings there is no finding in respect of utilisation of capital receipt by the AO. Further, the general contention of capital receipt cannot be always accepted because even in charitable trust, fi there are corpus donations, the donation needs to be used for the purpose for which it is taken and till the mean time, if it is not used, it needs to be invested in the specified modes. Hence, even general contention of capital receipt cannot be accepted because it is found from the assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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