ITO Vs Veer Kunwar Singh Shodh Sansthan (ITAT Delhi)
ITAT Delhi dismissed the Revenue’s appeal for AY 2018-19 in Veer Kunwar Singh Shodh Sansthan, affirming CIT(A)’s order granting substantial relief to the charitable trust.
On the Building Fund, the Tribunal held that ₹2.92 crore was a pure opening balance as on 01.04.2018, accumulated over more than a decade. Since the amount did not arise in the relevant AY, its addition was wholly unsustainable. The AO had not carried out any investigation into year-wise accretions despite details being furnished; taxing an opening balance in the current year was therefore patently erroneous.
On corpus donations, CIT(A) rightly drew a distinction. Of ₹6.83 lakh received during the year, donations supported by cheque, PAN and identity were accepted as capital receipts. However, ₹3 lakh received in cash from 22 persons (small amounts, but no confirmations/addresses) failed the primary onus of genuineness, and was rightly sustained. The Tribunal found no infirmity in this calibrated approach.
Result:
– ₹2.92 crore Building Fund addition deleted in full
– Corpus donation: addition restricted to ₹3 lakh only
– Revenue appeal dismissed
Opening balances cannot be taxed again; corpus donations remain exempt—but only to the extent identity and genuineness are proved.
FULL TEXT OF THE ORDER OF ITAT DELHI
