TaxTMI 
TaxTMI 
2024 (7) TMI 1010
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....ssuming jurisdiction conferred upon him by provisions of section 263 of the Act, the PCIT held that the assessment order is not only erroneous but also prejudicial to the interest of the Revenue and accordingly, set aside the assessment. 4. Pursuant to the directions of the PCIT, assessment proceedings were once again initiated and, accordingly, statutory notices were issued and served upon the assessee. While scrutinizing the return of income, the Assessing Officer noticed that the DIT, Exemption has rejected the application filed by the assessee for grant of registration u/s 12AA of the Act and exemption u/s 80G of the Act. 5. The Assessing Officer further found that the assessee has received corpus donation grant of Rs. 44.25 crores from another trust, namely, Bandhan-Konnagar, which is registered u/s 12A of the Act. The Assessing Officer was of the opinion that since the assessee trust was not registered u/s 12A of the Act, therefore, it is not eligible for exemption u/s 11(1)(d) of the Act in respect of corpus donation received by it and, accordingly, treated Rs. 44.25 crores as income of the assessee. 6. The assessee carried the matter before the ld. CIT(A) and reite....
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....tion being in the nature of capital receipt are not chargeable to income tax. So far as section 2(24)(iiá) is concerned, this section has to be read in the context of the introduction of the present section 12. It is significant that section 2(24)(iia) was inserted w.e.f. 01-04- 1973 simultaneously with the present section 12. Section 12 makes it clear by the words appearing in parenthesis that contributions made with a specific direction that they should form a part of the corpus of the trust or institution shall not be considered as income of the trust. In the case of RB. Shriram Religious and charitable Trust v. CIT[19881 172 ITR 373/39 Taxman 28 (Born.) Hon'ble Bombay High Court held that even ignoring the amendments to section 12, which means that even before the words appearing to parenthesis in the present section 12, it cannot be held that voluntary contributions specifically received towards the corpus of the trust may be brought to tax. The aforesaid decision was followed by the Hon'ble Bombay High Court in the case of Trustees of Kasturbai Scindia Commission Trust 189 ITR 5. In the present case, the A.O. on evidence has accepted the fact that the impugned ....
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....f the Act and as the donations/voluntary contributions received of Rs. 3,33,11,930/- by the appellant society are of Corpus and Capital nature, same are to be treated as exempt from tax liability, as the principles relating to judicial discipline assume significance and the priority. Accordingly, following the ratios of the judicial pronouncements mentioned supra, it is treated that the donations/voluntary contributions received by the 9 ITA Nos. 558 /VIZ/2018 ITA No.286/VIZ/2019 (M/s. Hosanna Ministries) appellant society are outside the taxations, even for the period prior to its registration u/sec. 12AA. Hence, the Assessing Officer is directed to delete the disallowance/addition made of Rs. 3,33,11,930/- in this regard." 8. In view of the above, we find no reason to interfere with the order passed by the ld. CIT(A). Thus, this appeal filed by the Revenue is dismissed." 13. Similar view was taken by the Tribunal Pune Bench in the case of Serum Institute of India Research Foundation ITA No. 621/PUN/2016. 14. On finding parity of facts, respectfully following the decision of the co-ordinate bench [supra], we decline to interfere with the findings of the ld. CIT(A). 15. In....
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....ance among the poor, so as to nandally include them into the mainstream financial markets, with a sole view to reduce poverty among the poor in India and that the fund may be used to exclusively investin different projects which may meet the above objective 3. Grant funds will be available immediately and shall be held in a separate endowment fund 4. Payment of grant funds will be made in full by electronic transfer following receipt by the Society Representative in Kolkata of the countersigned copy of this letter. Management of the And 5. The Fund shall be managed in accordance with the investment guidelines and policies determined from time to time by your Board. The Fund's management shall be overseen by the investment committee of your Board. Unless the Society agrees otherwise in writing, the Fund's investment quidelines and policies shall at all-time require (1) 100% of the Fund to be invested in India and (2) The Fund to be deseminated in Indian Rupees. Head Office EC-7. Seeker-1, Salt Lake City Kolkata-700064, West Bengal, Ind.,Phone & Fax 95-33-2334-162 23345 Reg. Office: Haras Chandra Bagages Lane, Hannagar Hoog12235 comat.c....