2022 (8) TMI 1034

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....0/2021-22/1037639463(1), dated 9/12/2021arising out of the order passed U/s. 143(1) of the Income Tax Act, 1961 ["the Act"] for the AY 2019-20. 2. Brief facts of the case are that the assessee is a registered society under the Societies Registration Act established for charitable purpose filed its return of income disclosing voluntary contribution towards corpus amounting to Rs. 52,70,000/-. The return was processed summarily u/s. 143(1) of the Act by disallowing the exemption u/s. 11 of the Act. The total income determined in the intimation was at Rs. 57,56,182/- and also depreciation of Rs. 3,80,813/- was disallowed in the intimation. Aggrieved by the summary assessment, the assessee filed an appeal before the Ld. CIT(A), NFAC, Delhi. ....

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....in it was held even though the society does not have 12A registration any amount received as corpus shall not be treated as income U/s. 2(24)(iia) of the Act. The Ld. AR submitted that an amount of Rs. 47.20 lakhs received for construction of building and Rs. 5.50 lakhs was received towards plantation expenses and disclosed in the Schedule-VC (Voluntary Contributions) in corpus fund donation received by the assessee while filing the ITR-7 for the AY 2019-20. The Ld. AR therefore pleaded that they shall not be treated as income of the assessee for the assessment year under consideration. Per contra, the Ld. DR relied on the orders of the Ld. Revenue Authorities. 5. We have heard both the sides and perused the material available on reco....

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....come U/s. 2(24)(iia) of the Act. Respectfully following the view taken by the ITAT, Bangalore, we hold that the donations received for specific purpose of acquiring the capital assets are tied up grants and cannot be treated as income U/s. 2(24)(iia) of the IT Act. Accordingly, we set aside the orders of the lower authorities and allow the appeal of the assessee." 6. Further, it is also observed that the Ld. Revenue Authorities have not disputed the contributions received but denied the exemption only due to the fact that the assessee is not registered u/s. 12A of the Act. The observation of the Ld. CIT(A) in para 4.21 of his order that the assessee is not registered under any Law either as a Society or as a Trust is not factually correc....