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The Tax PublishersITA No. 1983/Hyd/2018
2021 TaxPub(DT) 0796 (Hyd-Trib)INCOME TAX ACT 1961
Section 11
Denial of exemption under section 11 on the ground that hundi receipts embedded with specific purpose of corpus donation under section 11(1)(d) could not be held as justified as said 'Hundi' receipts in cash from donors were not revenue items but capital receipts only and relevant provisions of the 'Endowment Act' duly makes it clear that they were corpus donations which nowhere go against the provisions of tax law.
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Charitable trust - Exemption under section 11 - 'Hundi' receipts in cash from donors not revenue items but capital receipts only -
Assessee claimed exemption under section 11 which was denied on the ground that Hundi receipts embedded with specific purpose of corpus donation under section 11(1)(d). Held: None of the lower authorities had disbelieved or rebutted the assessee's plea that the impugned sums were in the nature of a 'hundi receipts' being donors' donations in cash or kind only; as per the state endowment law. Said 'Hundi' receipts in cash from donors were not revenue items but capital receipts only. The relevant provisions of the 'Endowment Act' duly makes it clear that they were corpus donations which nowhere go against the provisions of tax law. Therefore, there was no reason to sustain the action treating the assessee's Hundi receipts embedded with specific purpose of corpus donation under section 11(1)(d) not entitled for exemption being revenue receipts.
REFERRED :
FAVOUR : In favour of assessee
A.Y. : 2013-14
IN THE ITAT, HYDERABAD BENCH
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