TaxTMI 
TaxTMI 
2012 (7) TMI 361
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the Assessing Officer on the ground that donations received by the assessee were without any specific directions by the donors that such donations would become as a corpus funds and, therefore, it is an income of the assessee. 2. The brief facts of the case are that assessee is a trust. It has filed its return of income for assessment year 2008-09 on 30th September, 2008 declaring nil income. According to the Assessing Officer, the assessee trust was created by the settler Shri Surendra Verma vide trust deed dated 30.5.2007 with a contribution of Rs.5,000. During the year, assessee trust had received donations from six persons. Shri Manvinder Verma donated 10 acres of agricultural land having value of Rs.85,05,200. Apart from this dona....
X X X X Extracts X X X X
X X X X Extracts X X X X
....opies of the statement in January 2010 and the copies were supplied to it in November 2010 i.e. subsequent to the completion of the assessment. Assessee sought to lead additional evidence under Rule 46A of the Income-tax Rules, 1962. The assessee has contended that from the communication between the trustee and Manvinder Singh, it is discernible that the land was given to the trust for establishment of a management and engineering college. It was a corpus donation. Assessing Officer has given undue emphasizes to the alleged deed. Even in the deed, it has been pointed out that the land was given to Shri Raghbir Singh, an educational and charitable trust for the purpose of college. Learned first appellate authority has recorded the facts elab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ith receipts or donations received & Submissions of three persons recorded in proceedings u/s 12AA and utilized by the A.O. without providing any opportunity to the appellant to controvert or rebut. The copies or statements were received by the appellant only in November 10 2010, even though an application was made and usual charges deposited as early as 4.01.2010. (iii) Copies of donation receipts issued to 20 petty Donors making donations towards corpus of the Trust aggregating to RS.67,000/-along with their Affidavits, which could not be adduced before the A.O. in as much as he never doubted, nor asked to produce them, but adverse view was taken in the Assessment framed. A copy of the application u/r 46 A along with the complete se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Income tax Act. Subsequent events also do not change the character of the donation having been received towards corpus as aforesaid and rather confirm donor's intention. The perusal of statements of Sh. Kuldeep Singh, Manbir Singh and Smt. Sadhna recorded by the officials of CIT on 03.09.2008 reveals that they were specifically asked as to whether the donation made were towards corpus or the trust or general in nature. Only general questions were put as to how the amounts donated by them were to be utilized. The affidavits of such donors along with other donors submitted in appellate proceedings together with copies of donation receipts were forwarded to the A.O for necessary comments and also inquiry, but the AO did not give any adverse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ey pointed out that subsequent to the order of the Learned CIT(Appeals), a registration under sec. 12AA of the Act has been granted to the assessee w.e.f. the creation of the trust i.e. 25.5.2007. They drew our attention towards page 26 of the paper book wherein order of Learned CIT dated 17.10.2011 granting registration to the assessee under sec. 12AA w.e.f. 22.5.2007 is available. The learned counsel for the assessee has drew our attention towards the receipt issued by the trust indicating the fact that donations were received towards trust corpus. A specific mention was there in all the receipts. They also drew our attention towards letter of Shri Manvinder Verma dated 30.5.2007 wherein he has specifically observed that he would donat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aise any objection qua the irregularity, if any, crept in the order of the Learned CIT while granting registration. As far as the present litigation is concerned, it is to be decided in the light of the fact that assessee was having registration under sec. 12AA of the Income-tax Act. On an analysis of the facts, we find that the case of the revenue is that the intention of the donor apart from the gift deed not to be seen for concluding that it was a corpus donation. On the other hand, case of the assessee is that if discussion between the donor and the donee in the shape of correspondence etc. is seen then it would reveal that donation was made by the donor in order to establish an engineering and a management college in the name of his gr....