TaxTMI 
TaxTMI 
2025 (2) TMI 1831
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....39; eligible for exemption u/s.11(1)(d) of the Income Tax Act, 1961 ('Act' for short) is the question which falls for determination in this appeal. 2. The appellant-assessee is a Trust. The appellant had filed its Return of Income (RoI) for A.Y.2017-18 on 06/09/2017 declaring total income of Rs. 2,33,020/ -. The case was selected for scrutiny. During the assessment proceedings, the Assessing Officer vide notice dated 09/10/2019 issued u/s.142(1) of the Act had called upon the appellant interalia to furnish a copy of the Will of Dr.(Ms.) Gool Ardeshir Kohiyar dated 01/10/2010. The appellant vide letter dated 09/12/2019 furnished the copy of the Will by virtue of which the amount of Rs. 4,30,54,711/- was gifted in favour of the app....
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....ishna Seva Ashram (2013) 357 ITR 731 (Kar) and that of Hon'ble Rajasthan High Court in the case of Sukhdeo Charity Estate vs. Commissioner of Income Tax (1984) ITR 470 (Raj). It is submitted that the relevant test is (i) the intention of the donor and (ii) how the recipient-assessee treats the said income. The ld. Senior Counsel has pointed out that all along, the endowment has been treated as a capital receipt by the Trust. He therefore, submitted that the disallowance deserves to be deleted. 6. The Id. DR has submitted that the Will dated 01/10/2010 does not indicate any specific intention by the testator, late Dr. (Ms.) Gool Ardeshir Kohiyar as to the treatment of the donation. He therefore, submitted that the donation has rightly....
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....ed and which uses the resulting investment income for a specific purpose. * An endowment can also refer to the total of a non-profit institution's investable assets, also known as principal or corpus, which is meant to be used for operations or programs that are consistent with the wishes of the donor * In other words, an endowment is nothing but a donation of a capital nature, where the fund and properties received are to be invested or put to use in a manner to provide an enduring benefit such as a stream of income to support the receiving entity's objects and programs. * The endowment is to be treated as a corpus fund, the property and funds received to be invested, and the income received applied to th....
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.... of P. Ramanatha Aiyar, 2nd Edition reprint-208 the meaning of the word 'Corpus' is given as under: "A Body; human body; an artificial body created by law; as a corporation; a body or collection of laws; a material substance; something visible and tangible; as the subject of a right; something having legal position as distinguished from an incorporeal physical substance as distinguished from intellectual conception; the body of estate; or a capital of on estate". 13. The word 'Corpus' is used in the context of Income Tax Act. We have to understand the same in the context of a capital, opposed to an expenditure. It is a capital of an assessee; a capital of an estate; capital of a trust; a capital of an insti....
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...., in the capital field or not, is thus truly determinative of the investment being part of the corpus. Viewed thus, the mere fact of these investments being held as capital for at least more than four decades- as conclusively established by the material before the Assessing Officer, and only income from these investments being applied for the purposes of the trust, clearly establishes the fact of these investments being part of the corpus of the trust." 11. It can thus clearly be seen that the issue essentially turns upon the intention of the parties which can either be explicit or can be gathered as a necessary implication from the conduct of the parties and attending circumstances. Coming to the present case the Will does make a refere....