ITO(E)-1(1), MUMBAI, MUMBAI vs. BHAVITHA FOUNDATION, MUMBAI

ITA 4766/MUM/2023Status: DisposedITAT Mumbai30 May 2024AY 2021-22Bench: SHRI OM PRAKASH KANT (Accountant Member), SHRI RAJ KUMAR CHAUHAN ( (Judicial Member)11 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that dividend income earned on shares donated as corpus, with a direction to treat it as part of the corpus, should also be considered as corpus donation. The CIT(A) correctly followed the precedent set by the Supreme Court in a similar case.

What were the facts?

The assessee, a charitable institution, received shares as a corpus donation. The donor directed that any dividend or sale proceeds from these shares should also be treated as corpus donation. The Assessing Officer disallowed the exemption for dividend income, treating it as income to be applied as per Section 11. The CIT(A) deleted this addition.

What were the issues?

Whether dividend income derived from shares donated as corpus, with a direction to treat it as corpus, is eligible for exemption under Section 11. Whether the investment in shares is a specified mode under Section 11(5).

Which sections of the Income-tax Act were involved?

Section 11,Section 11(1)(d),Section 11(5),Section 13(1)(d)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, MUMBAI BENCH “B” MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI RAJ KUMAR CHAUHAN

For Appellant: Dr. K. Shivaram, Sr. Adv, Mr. Rahul K. Hakani, Mr. S. Srinivanu, CIT-DR
Hearing: 30/05/2024

PER OM PRAKASH KANT, AM

This appeal by the Revenue is directed against order dated 02.11.2023 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2021-22, raising following grounds:

Bhavitha Foundation 2

1.

Whether, on the facts and in the circumstances of the case and 1. Whether, on the facts and in the circumstances of the case and 1. Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is right by ignoring the fact that the assessee was clearly hit by Ld. CIT(A) is right by ignor

The order continues below.

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