Corpus donation received for specific fund is not chargeable to tax: ITAT

The issue in this appeal of the assessee is regard to the addition of Rs. 15 lakh made by the assessing officer.

In this case, assessee was a trust registered under Bombay Public Trust Act, 1950 and running one school named as MLA Suresh Bhau Khade English Medium School. During the year, assessee trust received Rs. 15 lakh dinatiom from trustee with specific direction for building. The assessing officer added Rs. 15 lakh to the income of the assessee charging it as revenue receipt.

Against this the assessee filed appeal before CIT(A) who confirmed tha addition made by AO.

Aggrieved by the order, assessee preferred appeal before tribunal. ITAT in its order dated 05.05.2022 held that the said sum of Rs.15.00 lakh was received by the assessee from one of the trustees towards building fund and was taken to the balance sheet only, amply shows that it was received as a corpus donation and hence not chargeable to tax. Therefore, it overturn the impugned order and delete the addition.

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