2017 (10) TMI 1619

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....eived during A.Y. 2011-12 towards building fund since the assessee has not satisfied both the conditions in order to claim the building fund as exempted under section 11(1)(d) of the I.T. Act, 1961. 3) The decision of the ld. CIT(A) is not acceptable as the Assessing Officer has rightly pointed out that the assessee, has not proved that 'specific donations' were given by the donors that the voluntary donations given by them shall form part of the corpus. 3. Briefly stated the facts of the case are as follows: The assessee is a Trust registered under section 12A of the I.T. Act. The return of income for the assessment year 2011-12 was filed on 29/09/2011 declaring 'nil' income. The assessment was taken up for scrutiny by issuance of noti....

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..... On appeal, the CIT(A) allowed the plea of the assessee. The relevant finding of the CIT(A) reads as follows: "7.3 I have considered this issue. The appellant is a charitable trust running an educational institution and also registered u/s. 12A of the IT Act. It is observed from the copies of balance sheet furnished by the appellant that the sum of Rs.2,53,18,335/- represent the aggregate contribution received during the FY 2010-11 was only Rs.52,66,500/- 7.4 It is also observed from the copies of receipts furnished by the appellant that the above sum of Rs.2,00,51,815/- belong to earlier financial years, it cannot be considered for FY 2010-11. In the above circumstances, I am of the opinion that the appellant is entitled for exemption....

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..... The contribution received for building fund has not been denied the benefit of section 11(1)(d) for the earlier assessment years. The Hon'ble Karnataka High Court in the case of DIT(Exemption) vs. Sri Ramakrishna Seva Ashrama (357 ITR 731) had held that if the intention of the donor is to give money to a Trust and to utilize the same for carrying out a particular activity, it satisfies the definition of the word 'corpus fund'. It was concluded by the Hon'ble Karnataka High Court that the assessee would thus be entitled to the benefit of section 11(1)(d) of the Act. A similar view has been taken by the following judicial pronouncements: 1. DIT (Exemptions) vs. Jaipur Golden Charitable Clinical Laboratory Trust (311 ITR 365 (Del). 2. DI....