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November 2024

Educational trust — Exemption — Corpus fund — Corpus donations whether for material gains or charitable purpose — Absence of material to establish that corpus donations given for securing admission – Cannot be treated as donations towards charitable purposes — Tribunal not justified in holding assessee ineligible for exemption on corpus fund.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 3 mins

53. N. H. Kapadia Education Trust vs. ACIT (Exemption)

[2024] 467 ITR 278 (Guj)

A. Y. 2013–14: Date of order 4th March, 2024

S. 11(1)(d)of ITA 1961

Educational trust — Exemption — Corpus fund — Corpus donations whether for material gains or charitable purpose — Absence of material to establish that corpus donations given for securing admission - Cannot be treated as donations towards charitable purposes — Tribunal not justified in holding assessee ineligible for exemption on corpus fund.

The assessee was an educational trust. For the A. Y. 2013–14, the Assessing Officer found in the scrutiny assessment u/s. 143(3) of the Income-tax Act, 1961, the copies of the receipts issued to students for the payment of the one-time admission fees mentioned that the amount paid was for the one-time admission fees. The Assessing Officer held that such a fee was not a voluntary contribution given with a specific direction t

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