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| The Tax Publishers2020 TaxPub(DT) 4690 (Asr-Trib) : (2020) 207 TTJ 0050 INCOME TAX ACT, 1961
Section 11 Section 12AA
Where assessee-society, which was not registered under section 12AA, claimed that maximum amount of donation received by it was used for purchase of land and construction of temple, however, the Revenue failed to sought clarification from the assessee to the effect as to whether the donation collected had been utilized for the purpose of construction of temple specifically and as to whether the assessee had been doing any other activity against its aims and objects, therefore, the issue qua addition of donation in the hands of the assessee was remanded to the AO for decision afresh. If the AO will find that the amount of donation has been spent for the construction of temple, then the assessee shall be entitled to claim the amount to that extent as capital receipts in nature.
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Charitable trust - Corpus donation - Assessee-society claimed corpus donation as capital receipt - Society being not registered under section 12AA
Assessee-society claimed corpus donation as capital receipt. However, AO was of the view that as the assessee was not registered under section 12AA, therefore, it could not claim the corpus donation as capital receipt. AO further observed that the aims and objects of the society seemed to have been formed for private religious purpose and to benefit 'Jain Community' in particular. Further, the minutes of the meeting held by the society also showed that the society was in process of purchasing land for a 'Jain Community Centre', however it was evident that during the relevant year, the assessee was not registered under section 12AA, and therefore, it was not entitled for exemption under section 12AA read with section 11. CIT(A) upheld the order of the AO. Held: Assessee claimed that maximum amount of donation was used for purchase of land and construction of temple and as the donation had been spent towards the construction of temple for achieving the aims and objects of the society, therefore the addition qua donations was unsustainable. Assessee further claimed that the Revenue would have sought clarification from it to the effect as to whether the donation collected had been utilized for the purpose of construction of temple specifically and as to whether the assessee had been doing any other activity against its aims and objects. It was found that the AO as well as the CIT(A) failed to exercise on the said situations and passed the order on conjectures and surmises. Therefore, the issue qua addition of donation in the hands of the assessee was remanded to the AO for decision afresh.
REFERRED : CIT v. Indira Balkrishna (1960) 39 ITR 546 (SC) : 1960 TaxPub(DT) 0163 (SC) ITO v. Gaudiya Granth Anuved Trust (ITA No. 386/Agra/2012, dated 2-8-2013) : 2014 TaxPub(DT) 0014 (Agra-Trib).
FAVOUR : Matter remanded
A.Y. : 2014-15
IN THE ITAT, AMRITSAR BENCH
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