2025 (11) TMI 1005

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....nder Section 143 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), for assessment year 2016-17. 2. The assessee has raised following grounds of appeal: "1. The Order of the Ld. Joint Commissioner of Income Tax (A) is bad in law and on facts. 2. That on the facts and circumstances of the case and in law, the L.d. JCIT (A) has erred in upholding the addition of Rs. 25,65,000 ignoring the fact that the payment was made to specified organisation for specific activities to be undertaken rather than general donation. 3. The Explanation to section 11(2) withdraws exemption to income accumulated u/s 11(2) if the donation is given to any trust institution registered u/s 12AA or to any fund institution/....

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....n of Rs. 25,65,000/- to different organizations was given for specific purpose which was also confirmed by the said organizations and therefore the authorities below were not justified in disallowing the same. The assessee has also filed written submissions, which for the sake of clarity are reproduced as under: "1. The Appellant is a Trust registered u/s 12A and 80 G and is engaged in the services of providing education, medical relief to the poor & needy. 2. During the previous year relevant to A.Y 2016-17, the Trust gave specific grants to the following Organizations for the purpose indicated therein: Name Grant given Purpose Delhi Chinmaya Sewa Trust 50,000 Scholarship to Students Aaroh 5,00,000....

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....ted that there is a distinction between "grant" and "donation" A grant is given for a specified, defined purpose, The grant is required to be spent according to the stipulations laid down in the grant proposal and no deviation is permitted. A grant requires the donee organization to submit a detailed report of how the money was spent with proof of such expenditure. Typically, if the Donee Organisation cannot utilize the grant for the specific purpose, then the amount is required to be refunded to the Donor Organisation. There are no such restrictions on donations given. The money given as a donation can be spent by the Donee organization for any purpose including administrative expenses etc. There is no reporting ....