2011 (10) TMI 637

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....s) is bad both in the eye of law and on facts. (ii) On the facts and circumstances of the case, the order passed by Ld. Commissioner of Income Tax (Appeals) has erred both on facts and in law in confirming the addition of Rs. 74,05,400/- made by the Assessing Officer on account of donation received. (iii) On the facts and circumstances of the case, the order passed by Ld. Commissioner of Income Tax (Appeals) has erred both on facts and in law in ignoring the contention of the appellant that no additions under section 68 of the Act can be made an account of donations received as donation per-se is income according to the definition of income under section 2(24)(iia). (iv) On the facts and circumstances of the case,....

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....l of the assessee has made an alternate submission that even if the donation is treated as income of the assessee, assessee cannot be denied benefit for exemption u/s 11 of the IT Act as more than 85% of the income has been utilized for charitable purposes. In this connection, he referred the decision of the Hon'ble Jurisdictional High Court in the case of Director of Income Tax (Exemption) vs. Keshav Social and Charitable Foundation 278 ITR 152 (Del). In this case it was held as under:- "To obtain the benefit of the exemption under s. 11, the assessee is required to show that the donations were voluntary. In the present case, the assessee had not only disclosed its donations, but had also submitted a list of donors. The fact that ....

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....as to compute the correct taxable income, if any. In this regard the detailed computation at paper book page 106 clearly shows that the application of income was more than the income as being alleged by the Assessing Officer. The appellant trust has received Rs. 84,30,900/- towards corpus out of which the Assessing Officer has accepted Rs. 13,46,500/- as donation received towards corpus. The balance amount of Rs. 70,84,400/- has been considered as income of the appellant trust by invoking provisions of section 68 of the Act by the Assessing Officer. Thus, this amount will increase the total income of the trust. Similarly the sum of Rs. 3,21,000/- being donation received (Paper Book page 86) will be considered as income. Thus total income as....