2022 (9) TMI 1086

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....vity the Act] for A.Y. 2020-21. 2. The assessee has taken the following grounds which reads as under: "1. The Worthy CIT Exemptions is not justified in not granting registration u/s 12AA to the assessee trust on the alleged ground that: i) The appellant is going beyond the aims and objectives of trust deed and investing in capital assets which will yield commercial rental income. ii). The appellant has not paid tax on corpus receipts treating these as unexplained cash credits, amounting to evasion of tax and thus, holding these as not a genuine activity of trust. 2. The appellant craves leave to amend, alter or substitute any/ all the grounds of appeal before or at the time of hearing." 3. The brief fact of the case is that the as....

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....Niketan, vs. CIT (Exemptions), Lucknow in ITA No. 6721/Del/2015order dated 25.08.2017 is reproduced as under: "6.9 We further of the view that at the stage of granting registration u/s 12A the Ld. CIT(E) has required to see the objects of society and not required to examine on the application of income which will have to be undertaken by the Assessing Officer (AO) on a year to year basis after assessee files return of income claiming exemption u/s 11. This position is now well settled by several authoritative pronouncements on the subjects. On the facts of present case there cannot be even an iota of doubt that the objectives of assessee society are charitable in nature being an objective of general public utility within the meaning of se....

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....upto 31st August 2020 and all the donations are not unanimous donation and not the unexplained money. The assessee-trust had maintained proper record for all the donations. He further relied on the order of Chadraprabhu Jain Swetamber Mandir vs. ACIT', (2017) 82 taxmann.com 245 (Mum-Trib.). "3. I have also come across another decision of the hon'ble Income-tax Appellate Tribunal, Kolkata in the case of Shri Shankar Bhagwan Estate v. ITO [1997] 61 ITD 196 (Cal) in which, the taxability of corpus donation has been examined in the light of section 12 read section 2(24)(iia) of the Income-tax Act and in this decision, it has been held as under : 'So far as section 2(24)(iia) is concerned, this section has to be read in the context o....

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....pted the facts that all the donations have been received towards the corpus of the endowments. In view of this clear finding, it is not possible to hold that they are to be assessed as income of the assessees. We, therefore, hold that the assessment of the corpus donations cannot be supported." 5. The ld. CIT DR, vehemently argued and relied on the order of the ld. CIT(E) and he relied on the specific para of the order of CIT(E) in page 7 Para 6 is reproduced as under: "6. On perusal of trust deed, it is noted that founder of trust is desirous of construction of structure for generation of income by way of rent, which is commercial in nature. Moreover, these are no such aims & objects of trust as per deed. Hence, there is inherent contra....