Case Law Details
Das Bahuuddeshy Vishwast Sanstha Vs Exemption Ward (ITAT Pune)
It is seen as an admitted position that the assessee received a sum of Rs.15.00 lakh from one of its trustees, which amount was spent on building construction of the school. The case of the assessee is that the amount was a corpus donation and hence, not chargeable to tax, which has been jettisoned by the authorities by treating it as a chargeable receipt. Admittedly, the amount was not taken to Income and Expenditure Account but was taken straightaway to the balance sheet. During the course of assessment proceedings it was categorically stated that it was received from one of the trustees with a specific direction. In view of the fact that the said sum of Rs.15.00 lakh was received by the assessee from one of the trustees towards building fund and was taken to the balance sheet only, amply shows that it was received as a corpus donation and hence not chargeable to tax.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal by the assessee is directed against the order passed by the CIT (Appeals) -2, Kolhapur on 23-10-2019 in relation to the assessment year 2016-17.
2. The only issue raised in this appeal is against the confirmation of addition of Rs.15.00 lakh made by the Assessing Officer (AO).
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