ITAT adjudicated a dispute regarding corpus donation receipts...

ITAT adjudicated a dispute regarding corpus donation receipts for a charitable organization. The tribunal found that while revenue authorities challenged the voluntary nature of contributions, the assessee had consistently treated these receipts as corpus donations for 15-20 years with full transparency during assessment proceedings. Referencing precedent from Gujarat HC in a similar case involving an educational trust, ITAT ruled that penalty under section 271(1)(c) was unwarranted given the bona fide belief and complete disclosure. The tribunal ultimately allowed the assessee's appeal, determining that the contributions did not merit punitive taxation or penalties based on the established pattern of financial reporting and good faith interpretation of the donations.