2020 (4) TMI 613

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the I.T.Act, though it was voluntary donation received by the assessee-trust towards corpus fund. 3. The facts of the case in brief are that the assessee has received following donations in various assessment years totaling to Rs. 33,80,000 :- Sl. No. Name of the Trustees 2005-06 (FY) 2006-07 (FY) 2007-08 (FV) Total 1. E.Abdurahim 6,00,000 4,90,000 120,20,000 21,10,000 2. P.Laila 6,00,000 -- 1,70,000 7,70,000 3. E.Raheema 2,50,000 -- -- 2,50,000 4. E.Rahana 2,50,000 -- -- 2,50,000   Total 17,00,000 4,90,000 11,90,000 33,80,000 3.1 The Assessing Officer was of the opinion that out of the total amount of Rs. 33,80,000 recei....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the corpus donations made by the Trustees as furnished above would show that the contribution made during the financial year 2007-2008 relevant to the present assessment is Rs. 10.20 lakh by Sri.E.Abdurahim and Rs. 1,70,000 by Mrs.P.Laila. The aggregate is Rs. 11,90,000. These trustees had already contributed during the previous year/years by way of corpus donation and had sufficient source for making such donation which had been accepted for those years. The sum of Rs. 11.90 lakh received as Corpus donation for the financial year 2007-2008 is explained as per letter dated 20.9.2011. The above document was also considered by the A.O. However, on an ad-hoc basis, Rs. 8.80 lakh was treated as assessable income. The confirmation lette....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce as unexplained. This estimate is contrary to the statutory provision and the settled principles. Copies of the balance sheet, etc. for prior years and bank statements of the Trust for prior years are submitted separately. 3.4 As regards the income tax assessment particulars of the Trustees, the learned AR submitted that the assessee has clarified that the Trustees are not having any taxable income and are not assessed to income tax. However, their PAN are furnished below :- (i) Abdurahim BLKPA8641M (ii) Laila ALUPL1816A (iii) Rehana E BIYPR6849F (iv) Raheema E ABKPE9768K 3.3 The learned AR further submitted that it may be seen that the surplus income over expenditure for the asst. years 2006-07, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e exempted if the aggregate of annual receipts is not more than Rs. 100 lakh. Where the annual receipts of the Educational Institution are below Rs. 100 lakh, exemption u/s. 10(23C)(iiiad) would apply to the surplus and accordingly, is eligible for exemption. Accordingly, no part of the receipt is taxable: ACIT Vs. Shiksha Samiti : (2015) 38 ITR (Trib.) 616 (Delhi.). 4. The learned Departmental Representative, on the other hand, besides supporting the orders of the authorities below, submitted that the assessee is trying to do was to launder its unaccounted income by converting it into donations, which shall not be permitted. 5. I have heard the rival submissions and perused the material on record. It was held by the Hon'ble Supreme C....