Case Law Details
Dudhsagar Research & Development Association Vs ACIT (Exemption) (ITAT Ahmedabad)
ITAT Ahmedabad held that donations which are not voluntary in nature cannot be treated as corpus donation and hence not eligible for deduction u/s 11(1)(d) of the Income tax Act
Facts-
During the course of assessment proceedings it was observed that the Assessee had received corpus donation on which exemption was claimed under Section 11(1)(d) of the Act.
AO observed that the contribution was received from milk supplying societies (Donor MSS). The Donor MSS sell their milk to the Mehsana District Co-operative Milk Producers Union Ltd,(MDCMPUL), a parent body which is being processed and further sold as packaged milk and other milk products. It was apparent that the contribution was not voluntary contribution but was compulsorily collected from Donor MSS and therefore, could not be treated as corpus donation.
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