Case Law Details
Kakatiya Sangham Vs ITO (ITAT Visakhapatnam)
ITAT Visakhapatnam held that contributions received for charitable purpose cannot be treated as income u/s 2(24)(iia) of the Act and hence, the provision of section 2(15) do not apply to the corpus fund donations of a charitable institution.
Facts- The assessee society was registered u/s 12A of the Act. The assessee receives voluntary contributions and fee for maintaining marriage halls. AO noticed that the assessee is in receipt of marriage hall maintenance charges of Rs.31,26,141/-, which is in excess of Rs.25,00,000/-. AO held that running a marriage hall is in the nature of advancement of any other object of general public utility, but, as per the proviso to section 2(15), the receipts are to be taxed as per the ceiling limits automatically, once the total receipts exceed Rs.25,00,000/-, irrespective of the fact whether they are received for specific purpose.
CIT(A) dismissed the appeal. Being aggrieved, assessee has preferred the present appeal.
Conclusion- The Tribunal in the case of Sri Satya Sai Educational and Service Society vide I.T.A.No.5/Viz/2022 dated 23.08.2022 has observed that contributions received for a specific purpose cannot be regarded as income u/s 2(24)(iia) of the Act and the provisions of section 2(15) do not apply to the corpus fund donations of a charitable institution.
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