2007 (10) TMI 382

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....led to exemption under section 10(22) of the Act when the claim of exemption was upheld by the Tribunal for the earlier years ? 2. Whether on the facts and circumstances of the case the Appellate Tribunal was right in law in holding that the contribution received towards corpus are not voluntary and hence form part of tax-able income? 3. Whether on the facts and circumstances of the case the Appellate Tribunal was right in law in holding that the contribution received by the trust is not exempt under section 10(22) when the trust has utilised the entire receipt for the purpose of running educational institutions?" 2. The facts of the case culminated in the filing of the present appeal proceed as follows: 3. The assessee is a pub....

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....ad to be considered separately. In the course of considering the plea of the assessee, the Tribunal pointed out that in all the earlier years, there was no dispute regarding the nature of receipt as donations, but in the present case, the dispute was purely one as regards capitation fees paid by the students at the time of admission. In such circumstances, the Tribunal held that the assessee was not entitled to have the benefit of the orders passed for the earlier years granting the exemption. The Tribunal also found that the contributions received by the assessee-trust in the shape of capitation fees is not voluntary one and hence, cannot be called donation. 4. Learned counsel appearing for the assessee submitted that for the purpose of....

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....tion towards charitable purpose, and as such, the assessee is not entitled to have the benefit. 6. A perusal of the order of the Commissioner of Income-tax (Appeals) shows that he merely applied the decision made in earlier years to grant the relief and considered the payment as a voluntary contribution and hence exempted under section 11(1)(d). However, going by the statement recorded from the parents, rightly the Tribunal came to the conclusion that these amounts were in fact paid only by way of capitation fee and not towards corpus account of the assessee-trust. In the absence of any material to disturb this fact, we do not find any merit in the submission made by learned counsel for the assessee that the provisions, namely section 10....