Section 11 of Income Tax Act: Charitable Trusts Must Register to Qualify for Donation Exemption as Non-Taxable Capital Receipts.

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....Exemption u/s 11 - Receipt of donations - If we accept the proposition as canvassed by assessee, then the whole scheme of assessment of charitable institution/trust contemplated in Section 11 to 13 of the Act would become redundant. The arguments of the ld. Counsel for the assessee is that, it is not necessary that a trust/institution should be registered for availing benefit of Section 11(1)(d) of the Act. If an institution has demonstrated that donations were received towards corpus then automatically, it will become a capital receipt which is not taxable. However, we do not agree with these submissions because nowhere in the Act this proposition has been provided. - AT....