Case Law Details
Jeypore Evangelical Lutheran Church Vs ITO (ITAT Cuttack)
From the narration given in the list of donations, it is observed that the amount of donation has been given for the specific purpose. The Assessing Officer has bifurcated three donations as specific purpose and left out other donations not being specific purpose without giving any reason. The donations are being specific purpose and being capital receipts are not coming within the ambit of definition of income as defined under section 2(24)(ii) of the Act. It being a capital receipts, there is no necessity of routing through income and expenditure account, as claimed by the Assessing Officer. I also find that the some donations have been received for the special project undertaken by the trust and, therefore, same cannot be treated as revenue receipt. It is not the case that the assessee trust has not disclosed the donation and have not accounted for. The amount received clearly demonstrates for the purpose of various project development and building construction. In view of above, I am of the considered view that the amount received by the assessee trust for specific direction to use the same for different project undertaken by the assessee and is entitled for deduction u/s.11 of the Act. I also find that the decisions relied by ld A.R. of the assessee, as reproduced above, support the case of the assessee, wherein, the corpus funds received by the trust are considered as capital receipts, not includible in income of the trust. Therefore, I am of the considered opinion that the issue is covered in favour of the assessee by the various decisions (supra). Hence, I allow the appeal of the assessee and direct the AO to delete the disallowance of Rs.1,64,44,237/-.
FULL TEXT OF THE ORDER OF ITAT CUTTACK
This is an appeal filed by the assessee against the order of the CIT(A), National Faceless Appeal Centre, Delhi dated 20.4.2021 for the assessment year 2014-15, in the matter of order under section 154 of the Income tax Act, 1961.
2. The assessee has raised the following grounds:
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