2020 (11) TMI 736

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....ng officer has failed to consider the fact that the Trust is duly registered u/s. 12AA having Registration No. H.Q.-IV-9/V-54/AR-III-74 and all the expenses are incurred for the object of the Trust. It is therefore submitted that the addition made is illegal and therefore requires to be deleted. It is submitted that it be so deleted now. 2. The learned CIT-(A) & assessing officer has erred in making addition of Rs. 50,53,755/- on account of voluntary contribution received by the Trust. As per section II(I)(d) of the Income Tax Act 1961 voluntary contributions received by the trust or charitable institutions with a specific direction that the contribution shall form part of the corpus of the trust or institution shall not be treated as inc....

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....bsp; C. Interest income Rs. 4, 16,565/-   Rs. 4,84,865/-   Total Rs. 14,85,180/-   4. As mentioned above assessee has earned income and had shown the same under the head "income from other Sources". Assessee Claimed huge expenditure from such income as discussed above. The assessee trust, in absence of registration u/s. 12A is treated as normal AOP and is taxed at maximum rate and the income of the assessee is considered to be only from "income from other Sources" and expenditure relatable to earning of such income are only allowed as deductions. 5. The expenditure which is laid out or expended wholly and exclusively for the purpose of making or earning such income is to be allowed as deductions while computing "inc....

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....l of the balance sheet it is observed that assessee had shown donations of Rs. 1,12,67,002/- received under the head " Other established fund" (As per Annex-A). During the year under consideration, assessee had received voluntary contributions of Rs. 50,53,755/- in the name of various funds. Further, as discussed in preceding para(s), in absence of registration u/s. 12A of the I.T. Act the exemptions claimed/enjoyed by the assessee are denied and rejected. Therefore, voluntary contributions of Rs. 50,53,755/- received in the name of various funds and is considered as the corpus donation by the assessee and is directly taken in the balance sheet considering it to be exempt income u/s. 11 (1)(d) of the Act, is added to the total income of the....