The Court held that the amount paid by parents for admission of...

The Court held that the amount paid by parents for admission of students to the educational institution run by the trust should be treated as corpus donation and not capitation fee. The Assessing Officer erred in treating the donation as capitation fee without proper inquiry from parents regarding the nature of payment. In absence of any contrary evidence, the amount cannot be characterized as capitation fee and the trust is entitled to exemption u/s 11(1)(d). The Tribunal's decision treating admission fee as non-corpus was incorrect. The appeal was decided in favor of the assessee against the revenue.

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