Sew Foundation Vs ITO (Exemptions) (ITAT Hyderabad)
ITAT Hyderabad held that condition of investment to the corpus donation in mode prescribed under section 11(5) of the Income Tax Act is effective only from 01/04/2022. Hence the said condition is not applicable in the relevant year. In the result, appeal of assessee is allowed.
Facts- The assessee has received corpus donation during the relevant financial year. AO has made an addition of the said amount of corpus donation of Rs.28,74,878/- for want of documentary evidence to prove the corpus donation. CIT (A) has confirmed the disallowance made by AO of the corpus donation only on the ground that the assessee has failed to prove that corpus donation is utilized or invested in the modes stated in section 11(5) of the I.T. Act. Being aggrieved, the present appeal is filed.
Conclusion- Held that the amendment brought in clause (d) of section 11(1) vide Finance Act, 2021 w.e.f. 01/04/2022 and insertion of Explanation 3A and 3B vide Finance Act, 2022 w.e.f. 01/04/201 are not applicable for the year under consideration and consequently, the conditions as prescribed in the amended provisions of section 11(1)(d) r.w. Explanation 3A and 3B that such voluntary contributions are invested or deposited in the forms or modes specified u/s 11(5) of the Act are not applicable for the year under consideration for allowing the benefit of section 11(1)(d) of the Act. Accordingly, in the facts and circumstances as discussed above, the addition confirmed by the learned CIT (A) is not sustainable and liable to be set aside. Hence, we allow the claim of the assessee u/s 11(1)(d) of the I.T. Act in respect of corpus donation in question. In the result, appeal filed by the assessee is allowed.
