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“corpus donation”

Charitable TrustsSection 11(1)(d)Section 11(1)(d)517 judgments

The decision most relied on for corpus donation is CIT v. Shri Plot Swetamber Murti Pujak Jain Mandal (211 ITR 293), cited in 204 judgments on BharatTax.

Leading authorities on corpus donation

CIT v. Shri Plot Swetamber Murti Pujak Jain Mandal
211 ITR 293 · 1995 · High Court
204
citing judgments

A charitable trust can carry forward its excess expenditure from previous years and adjust it against the income of subsequent years, which qualifies as an application of income under Section 11. Additionally, voluntary contributions received for a specific purpose are treated as corpus funds and are not taxable.

CIT v. Programme for Community Organisation
248 ITR 1 · 2001 · Supreme Court
90
citing judgments

The 15% exemption available to charitable trusts under Section 11(1)(a) is absolute and is not curtailed by the provisions of Section 11(2) regarding accumulation of income. Voluntary contributions received towards the corpus of a trust are excluded from the scope of income for Section 11(1)(a) exemption purposes.

CIT v. Programme for Community Organisation
228 ITR 620 · 1997 · High Court
73
citing judgments

For charitable or religious trusts, income for exemption under Sections 11 and 12 must be computed on a commercial basis, not head-wise as per Section 14, treating expenditure as a charge against income. The net income, along with non-corpus donations, forms the eligible base for determining the application of funds and the permissible accumulation under Section 11(1)(a).

P.M. Mohammed Meerakhan v. CIT
73 ITR 735 · 1969 · Supreme Court
58
citing judgments

The assessee bears the onus to prove the genuineness and voluntary nature of donations received, including corpus donations. Failure to discharge this burden allows the Assessing Officer to treat such donations as non-genuine or accommodation entries.

CIT v. Bijli Cotton Mills (P) Ltd.
116 ITR 60 · 1979 · Supreme Court
48
citing judgments

Dharmada collections are not taxable income of the assessee if they are genuinely meant for and spent on charitable purposes, or if they are voluntary contributions not accruing to the assessee's own benefit.

Director of Income Tax (Exemption) v. Keshav Social and Charitable Foundation
278 ITR 152 · 2005 · High Court
42
citing judgments

For charitable trusts claiming Section 11 exemption, Section 68 concerning cash credits does not apply to donations received. The non-submission or non-production of donor details does not automatically lead to an inference that the trust is introducing unaccounted money.

CIT v. National Association of Software & Services Companies
345 ITR 362 · 2012 · High Court
40
citing judgments

A one-time fee paid by members, with the understanding that it can only be used for capital purposes, is considered a corpus donation and is not taxable as income. This is especially true when separate fees are collected for services rendered.

DIT v. Shri Ramakrishna Seva Ashram
357 ITR 731 · 2013 · High Court
35
citing judgments

Donations made for a specific purpose are considered capital in nature and cannot be applied for charitable or religious purposes, thus not being deemed income from property for the purposes of Section 11 of the Income Tax Act.

Judgments citing corpus donation

M/S Aryans Educational and Charitable Trust, Mohali vs. DCIT, C-1, (E), Chandigarh

In the result, appeal of the assessee is partly allowed

ITA 821/CHANDI/2019[2013-14]Status: DisposedITAT Chandigarh25 Jul 2024AY 2013-14

Bench: Shri A.D. Jain & Dr Krinwant Sahayआयकर अपील सं./ Ita No. 821/Chd/2019 "नधा"रण वष" / Assessment Years : 2013-14 M/S Aryans Educational & Vs. The Dcit, Circle-1 Charitable Trust, बनाम (Exemptions), # 2129, Phase-10, Chandigarh Mohali "थायी लेखा सं./Pan No: Aabta7550L

For Appellant: Sh. Tej Mohan, Singh, AdvocateFor Respondent: Shri Rohit Sharma, CIT DR
Section 11(1)(d)Section 115BSection 13(1)(c)Section 133(6)Section 68

conducted detailed enquiries as per section 133(6) & 131 of the Act, in order to verify the claims of assessee of having received corpus donation amounting to Rs. 1,63,73,648/- from students of its institutions. The detailed enquiries conducted by the AO led him to conclude that ... entity and take away the exemption status in light of its emphasis on profiteering from students. It is also the case that corpus donations defined in section 11(1)(d) of the Act necessitates presence of specific direction to that effect. Corpus fund as is commonly understood

Ghelani Charitable Trust, Mumbai vs. Income Tax Officer (Exemp)1(3), Mumbai

Appeal is partly allowed for statistical

ITA 2116/MUM/2024[2017-18]Status: DisposedITAT Mumbai24 Jul 2024AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Omkareshwar Chidaraassessment Year: 2017-18

For Appellant: Shri Sanjay Parikh, A.RFor Respondent: Dr. Kishor Dhule, CIT D.R
Section 11(2)Section 11(6)Section 143(3)Section 148Section 50C

failed to consider the request for allowing the time for submission of small balance direction letters for corpus donations. 4. The Ld. AO erred in not allowing depreciation u/s. 11(6). 5. The Ld. AO erred in adding interest on income tax refund which was not received

Society of the Congregation of Franciscan Brothers, Mumbai vs. The Assistant Commissioner of Income Tax(E), Circle -2, Mumbai

In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes

ITA 4747/MUM/2023[2016-17]Status: DisposedITAT Mumbai24 Jul 2024AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh () Assessment Year: 2016-17 Society Of The Congregation Of The Asst. Cit (E), Circle 2(1), Franciscan Brothers, Mtnl Building, Peddar Road, Vs. 1, Mount Poinsur, Borivali West, Mumbai-400026. Mumbai-400103. Pan No. Aaats 1005 K Appellant Respondent

For Appellant: Ms. Rajeshwari Menon, Sr. DRFor Respondent: Mr. N Jayendran
Section 11Section 24

addition of Rs.81,60,000/ confirming the addition of Rs.81,60,000/-made by the AO by treating made by the AO by treating corpus donation as non corpus donation as non-corpus on the ground that letters of the donors of the donors did not mention the word "corpus ... Officer made disallowances for two items. Firstly, he Assessing Officer made disallowances for two items. Assessing Officer made disallowances for two items. observed that corpus donation observed that corpus donations claimed by the assessee were not claimed by the assessee were not having specific mention having specific mention of purpose

Nandlal Tolani Charitable Trust, Mumbai vs. ITO Exem Ward 2(1), Cumballa Hill, Mumbai

ITA 650/MUM/2024[2015-16]Status: DisposedITAT Mumbai23 Jul 2024AY 2015-16

Bench: Shri. Om Prakash Kant & Shri. Raj Kumar Chauhan

Section 10Section 11Section 14Section 24Section 250

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE SHRI. OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI. RAJ

Nandlal Tolani Charitable Trust, Mumbai vs. ITO (Exemption), Ward-2(1), Mumbai

ITA 113/MUM/2024[2014-15]Status: DisposedITAT Mumbai23 Jul 2024AY 2014-15
Section 10Section 11Section 14Section 24Section 250

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE SHRI. OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI. RAJ

Deputy Commissioner of Income Tax (E)-1(1), Mumbai vs. Indian Education Society, Mumbai

In the result, both the appeals filed by the revenue in ITA No

ITA 1202/MUM/2024[2016-17]Status: DisposedITAT Mumbai22 Jul 2024AY 2016-17

Bench: Shri Anikesh Banerjee & Shri Gagan Goyal

For Appellant: Shri H. M. Bhatt, Ld. DRFor Respondent: Shri Devendra Jain, Ld. AR
Section 11(1)(d)Section 144Section 144BSection 147Section 151Section 250

Income-tax Act, 1961 ignoring that the discretion lies with the donor, not with the trust, whether the donation should be a corpus donation or not? 2. The assessee has raised the following grounds of appeal in CO No. 83/Mum/2024 for AY 2015-16:- 1) In the facts and circumstances ... issuance of a notice u/s. 148 of the Act Dated 31.03.2021. 5. As mentioned above, the appellant has received the corpus donation to the tune of Rs. 2, 42, 95,651/- from 113 persons, in the year under consideration. The Assessing Officer noted that all the donors have submitted confirmation

Deputy Commissioner of Income Tax (Exemptions)-1(1), Mumbai vs. Indian Education Society, Mumbai

In the result, both the appeals filed by the revenue in ITA No

ITA 1150/MUM/2024[2015-16]Status: DisposedITAT Mumbai22 Jul 2024AY 2015-16

Bench: Shri Anikesh Banerjee & Shri Gagan Goyal

For Appellant: Shri H. M. Bhatt, Ld. DRFor Respondent: Shri Devendra Jain, Ld. AR
Section 11(1)(d)Section 144Section 144BSection 147Section 151Section 250

Income-tax Act, 1961 ignoring that the discretion lies with the donor, not with the trust, whether the donation should be a corpus donation or not? 2. The assessee has raised the following grounds of appeal in CO No. 83/Mum/2024 for AY 2015-16:- 1) In the facts and circumstances ... issuance of a notice u/s. 148 of the Act Dated 31.03.2021. 5. As mentioned above, the appellant has received the corpus donation to the tune of Rs. 2, 42, 95,651/- from 113 persons, in the year under consideration. The Assessing Officer noted that all the donors have submitted confirmation

M/S. Kodava Education Society, Ponnampet vs. Assistant Commissioner of Income Tax, Exemptions, Circle-1, Bengaluru

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 764/BANG/2024[2017-18]Status: DisposedITAT Bangalore16 Jul 2024AY 2017-18

Bench: Shri Chandra Poojari & Shri Keshav Dubeykodava Education Society Acit (Exemptions), Circle-1 Po Box No. 11, Halligattu Unity Building Annexe Vs. Ponnampet 571216 5Th Floor, Mission Road Pan – Aaaak1322J Bengaluru 560027 (Appellant) (Respondent) Assessee By: Shri Vishal Rao, Ca Revenue By: Shri Ganesh R. Gale, Standing Counsel Date Of Hearing: 28.05.2024 Date Of Pronouncement: 16.07.2024 O R D E R Per: Keshav Dubey, J.M. This Appeal At The Instance Of The Assessee Is Directed Against The Order Of The National Faceless Appeal Centre, Delhi /Cit(A) Under Section 250 Of The Income Tax Act, 1961 (The Act) Vide Din & Order No. Itba/Nfac/S/250/ 2003-24/1061703575(1) Dated 28.02.2024 For Assessment Year (Ay) 2017-18. 2. The Assessee Has Raised The Following Grounds Of Appeal: - “1 The Impugned Order Of The Appellate Commissioner Of Income Tax Is Liable To Set Aside In So Far As The Same Is Incorrect, Irregular, Improper, Unlawful & Oppose To The Law & Facts Of The Case. 2 That The Learned Appellate Commissioner Erred In Not Taking Cognizance Of The Fact That The Appellant Had Committed Certain Errors & Omissions In Filling Up The Return Of Income Which Ought To Have Been Substituted With The Correct Figures To Arrive At The Taxable Income, If Any & As Such The Impugned Order Is Liable To Set Aside.

For Appellant: Shri Vishal Rao, CAFor Respondent: Shri Ganesh R. Gale, Standing Counsel
Section 11Section 11(1)(a)Section 11(1)(d)Section 12ASection 143(3)Section 234BSection 234DSection 250

aside. 4 The Learned Appellate Commissioner erred in rejecting the Appellant's claim of deduction u/s 11(1)(d) in respect of Corpus Donations of Rs.70,01,601/- upholding the action of the AO in not considering the Voluntary Contributions by way Corpus Donations received aggregating ... erred in disregarding the Remand Report Issued by the AO dated 19.01.2023 confirming the claim of the Appellant regarding Gross Mess Receipts and Expenditure, Corpus Donations and as such the impugned order is liable to set aside. 7 The Learned Appellate Commissioner erred in disregarding the fact that his powers

Parul University, Vadodara vs. The Dy.CIT, Exemption Circle-1, Ahmedabad

Appeals are allowed

ITA 993/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

For Respondent: Shri Sudhendu Das, CIT-DR
Section 10Section 12ASection 133ASection 80G(5)

trustees. 10. Account payee cheques were deposited in bank account of the Parul Arogya Seva Mandal Trust and recorded in books as corpus donations. ITA No 991,992,993,1018 & 1019/Ahd/2023. Parul Arogya Seva Mandal Trust & Parul University (ITA 993/Ahd/2023) Asst. Years :2016-17 & 2017-18 5 11. Bearer cheques ... discrepancies are covered in the said disclosure. Therefore, AO calculated total amount received from salary of teaching staff by cheque and accounted as Corpus Donations for the financial year 2015-16 to Rs.10,07,60,400/- (Rs.83,96,700/- * 12 months). Total amount received as corpus donations

Parul Arogya Seva Mandal Trust, Ahmedabad vs. The Dy.CIT, Central Circle-1(2), Ahmedabad

Appeals are allowed

ITA 992/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

For Respondent: Shri Sudhendu Das, CIT-DR
Section 10Section 12ASection 133ASection 80G(5)

trustees. 10. Account payee cheques were deposited in bank account of the Parul Arogya Seva Mandal Trust and recorded in books as corpus donations. ITA No 991,992,993,1018 & 1019/Ahd/2023. Parul Arogya Seva Mandal Trust & Parul University (ITA 993/Ahd/2023) Asst. Years :2016-17 & 2017-18 5 11. Bearer cheques ... discrepancies are covered in the said disclosure. Therefore, AO calculated total amount received from salary of teaching staff by cheque and accounted as Corpus Donations for the financial year 2015-16 to Rs.10,07,60,400/- (Rs.83,96,700/- * 12 months). Total amount received as corpus donations

Parul Arogya Seva Mandal Trust, Ahmedabad vs. The Dy.CIT, Central Circle-1(2), Ahmedabad

Appeals are allowed

ITA 991/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2016-17

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

For Respondent: Shri Sudhendu Das, CIT-DR
Section 10Section 12ASection 133ASection 80G(5)

trustees. 10. Account payee cheques were deposited in bank account of the Parul Arogya Seva Mandal Trust and recorded in books as corpus donations. ITA No 991,992,993,1018 & 1019/Ahd/2023. Parul Arogya Seva Mandal Trust & Parul University (ITA 993/Ahd/2023) Asst. Years :2016-17 & 2017-18 5 11. Bearer cheques ... discrepancies are covered in the said disclosure. Therefore, AO calculated total amount received from salary of teaching staff by cheque and accounted as Corpus Donations for the financial year 2015-16 to Rs.10,07,60,400/- (Rs.83,96,700/- * 12 months). Total amount received as corpus donations

DCIT, Central Circle-1(2), Ahmedabad, Aayakar Bhawan, Ashram Road vs. Parul Arogya Seva Mandal Trust, Ahmedabad

Appeals are allowed

ITA 1019/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

For Respondent: Shri Sudhendu Das, CIT-DR
Section 10Section 12ASection 133ASection 80G(5)

trustees. 10. Account payee cheques were deposited in bank account of the Parul Arogya Seva Mandal Trust and recorded in books as corpus donations. ITA No 991,992,993,1018 & 1019/Ahd/2023. Parul Arogya Seva Mandal Trust & Parul University (ITA 993/Ahd/2023) Asst. Years :2016-17 & 2017-18 5 11. Bearer cheques ... discrepancies are covered in the said disclosure. Therefore, AO calculated total amount received from salary of teaching staff by cheque and accounted as Corpus Donations for the financial year 2015-16 to Rs.10,07,60,400/- (Rs.83,96,700/- * 12 months). Total amount received as corpus donations

DCIT, Central Circle1(2), Ahmedabad vs. Parul Arogya Seva Mandal Trust, Ahmedabad

Appeals are allowed

ITA 1018/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2016-17

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member

For Respondent: Shri Sudhendu Das, CIT-DR
Section 10Section 12ASection 133ASection 80G(5)

trustees. 10. Account payee cheques were deposited in bank account of the Parul Arogya Seva Mandal Trust and recorded in books as corpus donations. ITA No 991,992,993,1018 & 1019/Ahd/2023. Parul Arogya Seva Mandal Trust & Parul University (ITA 993/Ahd/2023) Asst. Years :2016-17 & 2017-18 5 11. Bearer cheques ... discrepancies are covered in the said disclosure. Therefore, AO calculated total amount received from salary of teaching staff by cheque and accounted as Corpus Donations for the financial year 2015-16 to Rs.10,07,60,400/- (Rs.83,96,700/- * 12 months). Total amount received as corpus donations

Assistant Commissioner of Income Tax, Circle ( Exemption ), Nagpur vs. M/S Shri Dadasaheb Gawai, Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 2/NAG/2018[2014-2015]Status: DisposedITAT Nagpur11 Jul 2024AY 2014-2015

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Manoj G. MoryaniFor Respondent: Shri Kailash C. Kanojiya
Section 115BSection 12A

assessment order, the Assessing Officer has noted that from the financials of the assessee, it had shown that the assessee has received corpus donation towards building fund at ` 4,36,30,500, and non–corpus fund at ` 8,96,20,600. The Assessing Officer asked the assessee to produce ... Officer has further noted that a letter dated 15.12.2016 was also issued to the assessee to show cause as why the corpus and non-corpus donations should not be viewed as anonymous donations attracting section 115BBC of Income Tax Act. In response to the said show cause letter, the Authorised

Brij Educational Trust, Meerut vs. CIT (Exemption), Lucknow

In the result, the Appeal filed by the Assessee stands allowed

ITA 1498/DEL/2022[2011-12]Status: DisposedITAT Delhi08 Jul 2024AY 2011-12

Bench: Shri Shamim Yahya & Shri Sudhir Pareeka.Yr. : 2011-12 Brij Educational Trust, Vs. Cit (Exemption), Lucknow A-162, Defence Colony, C.R. Building, Ito, Meerut-250001 (Up) I.P. Estate, (Pan: Aabtb4074C) New Delhi - 110 002 (Appellant) (Respondent)

For Appellant: Sh. K. Sampath, Adv. & Sh. V. RajkumarFor Respondent: Ms. Nidhi Singh, CIT(DR)
Section 14(3)Section 143(3)Section 147Section 148Section 151Section 26Section 263

subject case to specifically enquire into and verify the cash deposits of Rs. 83,57,700/-. That authorisation further stated that, if the corpus donations of Rs. 1,07,53,000/- received during the year, were in cash then that also be explained. It is noteworthy that nowhere ... then Ld. CIT(E), the AO had carried out the reassessment dated 21.06.2018 after verification of the cash deposits and also of the corpus donation. He had even additionally verified the loans from specified persons though verification of the loans was not a part of the original directions. After examining

Oriental Charitable Foundation, Kolkata vs. CIT(Exemptions), Kolkata

In the result, the appeal of the assessee is partly allowed

ITA 257/KOL/2022[2017-18]Status: DisposedITAT Kolkata04 Jul 2024AY 2017-18

Bench: Shri Rajpal Yadav & Shri Rakesh Mishraassessment Year: 2017-18

For Appellant: Shri Siddarth Agrwal, AdvocateFor Respondent: Shri Subhendu Datta, CIT, DR
Section 11Section 11(1)(d)Section 12ASection 143(3)Section 263

made proper enquiries and verification in the original assessment order framed u/s. 143(3) dated 06.09.2019. It is further stated that where a corpus donation has been made with the direction by the donor that such contribution shall form part of corpus but without a specific direction towards a project/activity ... such corpus contribution has been utilised subsequently towards the objects of the assessee Trust, as is discernible through its Trust Deed and such corpus donation shall not form part of the total income of the previous year of the trust in receipt of such income in so far as such

DCIT (Exemption)- 2(1), Mumbai vs. Maharashtra Energy Development Agency, Mumbai

ITA 1765/MUM/2023[2013-14]Status: DisposedITAT Mumbai27 Jun 2024AY 2013-14

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Kishore PhadkeFor Respondent: Smt. Sanyogita Nagpal
Section 10Section 11Section 143(3)

Development Fund Account were not in the nature of voluntary contributions or donations and therefore, the same could not be treated as Corpus donations referred to in Section 11(d) of the Act. Thus, the Assessing Officer brought to tax aggregate receipts of INR 48.98 Crores [Closing balance ... decision of the Assessee to treat some of the receipts as payments towards corpus would not change the nature of receipt from income to corpus donations. We note that the Rule 22 of the Rules governing the Assessee/MEDA placed on record by the Assessee, specifically provides that the funds

Gemmological Institute of India, Mumbai vs. Income Tax Officer (Exemp) - 1(3), Mumbai

ITA 4055/MUM/2023[2014-15]Status: DisposedITAT Mumbai20 Jun 2024AY 2014-15

Bench: Shri. Padmavathy S.

Section 11Section 12ASection 143Section 143(3)Section 250

claimed 2012-13 Yes Returned income accepted as assessed income. Copy of assessment order is enclosed as Annexure 3. Not claimed 2013-14 Yes Corpus donations were treated as revenue receipt. CIT(A) confirmed the addition made by the AO. An appeal was filed before ITAT, the appellant settled ... authorities is not correct. Before us, the assessee placed reliance on various case laws, which dealt with the case of receipt of corpus donations by a charitable trust/institution not registered u/s 12A of the Act. The Pune bench of Tribunal has held in the case of ITO (Exemptions) vs. Serum

Mohanlal Ramnarayan Khandelwal Foundation, Gandhwani vs. CIT(Exemption), Bhopal

In the result, both appeals of the assessee are allowed for statistical purposes

ITA 532/IND/2023[2023-24]Status: DisposedITAT Indore18 Jun 2024AY 2023-24

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

regarding the proceedings u/s 80G(5)(iii) of the Act the assesse also stated in para 7 that list of donations received including CORPUS donations in last 2 years was enclosed as Annexure-7. The assesse also explained that the institution has incurred expenses only on treatment etc. of poor

Mohanlal Ramnarayan Khandelwal Foundation, Gandhwani vs. CIT(Exmpetion), Bhopal

In the result, both appeals of the assessee are allowed for statistical purposes

ITA 531/IND/2023[2023-24]Status: DisposedITAT Indore18 Jun 2024AY 2023-24

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)

regarding the proceedings u/s 80G(5)(iii) of the Act the assesse also stated in para 7 that list of donations received including CORPUS donations in last 2 years was enclosed as Annexure-7. The assesse also explained that the institution has incurred expenses only on treatment etc. of poor