1998 (3) TMI 171

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....religious institution and receiving donations/voluntary contributions from the devotees. For this purpose, the assessee kept two Goloks (Boxes); one for 'corpus donation' and another for 'non-Corpus donation' in the premises of the temple. 3. The main grievance of the assessee is that the authorities below have not allowed "corpus" donation received from the different donors. The original assessments were challenged by the department before the ITAT who allowed the appeal for statistical purposes and set aside the assessments for determination by the Assessing Officer. The Assessing Officer after issuing a fresh notice, enquired and verified, observed that the Trust in the temple premises maintained two Goloks (Boxes); one marked "Corpus....

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....een the corpus donation and other donation. It is, therefore, difficult for the devotee to give a direction before giving donation. Therefore, both the Goloks (Boxes) have the same purpose and the income received will have to be added into the total income of the assessee. He also stated that the assessee had shown 1/3rd income in the donation box, and 2/3rd collection in the corpus box just to avoid the tax liability. 7. About the administrative expenses, he has mentioned that deduction has been given under the three heads, namely, (i) Administrative expenses; (ii) Application towards Puja expenses ; and (iii) Accumulation at the rate of 25%.  Therefore, the ground taken in appeal is not applied at all. 8. We have heard....

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....des of investment of trust funds. It cannot be said that "income ingredient" turned into "corpus ingredient" after the expiry of a particular period of time or by merely mentioning the name of "corpus funds". Reliance can be placed on Auditor Dasaradha Rami Reddy Charities v. CIT [1989] 177 ITR 249 / 44 Taxman 453 (Mad). Barring this, all funds of the trust are required to be deposited/invested strictly in the manner laid down in section 13(1)(d), read with section 13(5). In the light of above discussion, the assessee has not made out that the donors were able to give the direction before/at the time of donation to the corpus funds. No additional evidence has been placed on the record for strictly separate maintenance of the fund like Bank ....