2022 (6) TMI 336

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.... incorrect and illegal on the facts and in the circumstances of the case and legal position. 2. That on the facts and circumstances of the case and the legal position that Ld. CIT(Appeals) has erred in confirming the net addition at Rs. 14,17,467 /- when ,on the contrary. 3. Rs. 8,20,000 received were towards specific Corpus Donation for Land & Building fund under section 11(1)(d) of Income tax act 1961 , and Rs. 18,40,000 received towards Life Membership Fees were capital receipts,. ,and, out of Gross Income Rs. 57,03,327 the appellant trust had proved the balance application of funds of Rs. 24,92,268 (i.e. actual application of Rs. 33,12,268 - Rs. 8,20,000 allowed by Ld. A.O.) towards Construction of Community Hall incur....

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....sessee society has received life membership fee amounting to Rs.18,40,000/- and claimed the same as capital receipt of the corpus donation. The AO was of the view that since the receipt is not in the nature of corpus donation within the meaning of provision of section 11(1)(d) of the Act. Therefore, he issued a show cause notice to the assessee. However, the submission made by the assessee was not acceptable to the AO therefore, he made addition of Rs.18,40,000/-. Further, he made addition of Rs.8,20,000/- which was not included in the total income, was directly credited to the balance sheet under the head "Land & Building Fund". Hence, the AO assessed the income at Rs.14,17,470/- against the NIL income. 3. Aggrieved against this, the as....

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....ontributions made with a specific direction that it shall form part of the corpus of the trust or institution shall not be included in the total income of the previous year of the person in receipt of the income. In the present case, the assessee did not furnish any specific direction of the donors/members regarding the amount it received. Moreover, by no stretch of imagination, membership fee can partake character of voluntary contribution so as to qualify being voluntary contribution with a specific direction that it shall form part of corpus of the trust. The membership fee is paid in anticipation/in lieu of services rendered by the assessee. The case law as relied by the assessee is not applicable on the facts of the present case. Hence....