TaxTMI 
TaxTMI 
TaxTMI 
2017 (5) TMI 966
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....aking addition of Rs. 22,76,539/- on account of corpus donation and has further erred in treating the same as part of total receipts and that too by recording incorrect facts and findings and without observing the principles of natural justice. 2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in taking the figure of donation at Rs. 22,76,539/- instead of Rs. 22,00,000/-. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in holding that assessee society is not eligible for exemption u/s 10(23C)(iiiad) of the Act." 2. Briefly the facts of the case are ....
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....for school and balance amount has been used against building construction in next year. Therefore order of the Assessing Officer is not justified. The assessee relied upon the order of ITAT Agra Bench in the case of ITO vs. Gaudiya Granth Anuved Trust 28 ITR 161 in which it was held that donation against corpus fund are capital receipt and are not liable to be taxed even if trust has not been granted exemption u/s 12A of I.T. Act. Ld. CIT(A) however did not accept contention of the assessee and noted the aggregate annual receipt would not only include the revenue receipt but also the corpus fund. The appeal of assessee was accordingly dismissed. 4. Ld. Counsel for assessee reiterated the submissions made before authorities below and relied....
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....ment contends that the aforesaid High Court order is under challenge before the Hon'ble Supreme Court by way of a SLP filed by the Department. This, however, is not premise enough to allow the Department's appeal, particularly when the High Court order has not been shown to have been stayed. 13. In view of the above, respectfully following the High Court decision (supra) in the assessee's own case for assessment year 2003-04, the grievance of the Department is rejected." 5. He has also relied upon order of ITAT Agra Bench in the case of ITO vs. Gaudiya Granth Anuved Trust 28 ITR(Tr) 161 (Agra) in which it was held as under :- "Charitable trusts - Income of trust or institutions from contributions - assesseetrust had shown donation ....
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....ed. 8. I have considered rival submissions and material on record. It is not in dispute that assessee is an educational institution existing solely for education purposes. The assessee has revenue receipts of Rs. 96,36,555/- from running of educational institution. Assessee explained the Rs. 22 lacs have been received as corpus fund for meeting out capital expenditure from founder member. This fact is not disputed by the authorities below. Therefore the question is whether the corpus fund would be part of aggregate annual receipt of educational institution. In the case of ITO (E) vs. Smt. Basanti Devi & Shri Chakhan Lal Garg Education Trust (Supra), It was held that the amount received by the assessee trust from its settler towards infrast....