TaxTMI 
TaxTMI 
2021 (7) TMI 1341
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....gainst the orders of the ITAT 'SMC' Bench, Chennai in ITA Nos.45/Mds/2015, 43/Mds/2015 & 44/Mds/2015 for the assessment years 2007-2008, 2008-2009 and 2009- 2010 respectively. 2. The common issue in all the three appeals is whether the corpus donations in the form of voluntary contributions made with a specific direction would form part of the corpus of the trust and are exempted under Section 11(1)(d) of the Income Tax Act in the absence of 12AA registration of the Trust. The amount of such donations was Rs.8,71,157/- in 2007-2008, Rs.5,55,607/- in 2008-2009 and Rs.3,00,477/- in 2009-2010. In all the three cases, the Commissioner of Income Tax (Appeals) who heard the appeals against the Assessment Orders held that registration und....
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....e Appellate Tribunal was right in holding that donations to a non registered trust will be treated as income under Section 56(2)(v) of the Income Tax Atc, unless received from the blood relatives?" Substantial Questions of Law in TCA Nos.290 & 291/2016 : i. Whether on the facts and circumstances of the case, the contributions towards the corpus fund with specific directions can be treated as income under Section 2(24)(iia) in the case of the assessee, who is not registered charitable trust under Section 12AA of the Act? ii. Whether on the facts and in the circumstances of the case, the conditions laid down in Sections 11 and 12 shall apply even to trusts, which are not registered under Section 12AA of the Act, 1961? and iii.Whether o....
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.... this sub clause, "trust" includes any other legal obligations" Section 11(1) (d) of Income Tax Act 1961, amended in 1995, reads as follows: "Income from property held for charitable or religious purposes - 11.(1) Subject to the provisions of Sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income ...... a................... b.................. c.................. d.income in the form of voluntary contributions made with a specific directions that they shall form a part of the corpus of the trust or institution." Section 12 of the Act, reads that- Any voluntary contributions received by a trust created wholly for charitable or religious pur....
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....us of the trust is treated as follows : i. If the trust or charitable institution is registered under Section 12 AA of Income Tax Act, 1961 the voluntary contributions are not taxable as per Section 11(1)(d) of Income Tax Act, 1961 ii. If the trust or institution is not registered under Section 12AA, the voluntary contributions are taxable as per Section 2 (24) (iia) of the Income Tax Act, 1961 b) voluntary contributions received without direction that it forms part of corpus is generally taxable in all cases. 8. The learned counsel for the appellants tried to differentiate between Section 2 (24) (iia) and Section 11 (1) (d) of Income Tax Act, 1961. Her contention is that since the Section 2(24)(iia) is silent about the contribution ....
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....st's application for registration under Section 12 AA was rejected for want of documents and the exemption was denied. It was further held that the voluntary contributions received for a specific purpose cannot be considered as income under Section 2 (24) (iia) since they are capital receipts. However, it was observed that the said voluntary contributions was considered as a loan and refunded to the donors. These facts are different from the facts of the present case. In all the cases relied upon by her the non-registration under Section 12AA was not the issue. In some cases, the applications were made for registration of the trust but the registration was pending, and therefore the facts were different. 9.The various Income Tax Appel....
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....ncome of such trust or institution from the assessment year immediately following the financial year in which such application is made : Provided that where registration has been granted to the trust of institution under Section 12AA, then, the provisions of Sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year : Provided further that no action under Section 147 shall be taken by the Assessing Officer in case of such tru....