Sec. 12AA,& 11(1)(d) of Income-tax Act, 1961— Charitable Trust—  The assessee was a registered society registered under the Societies Registration Act, filed its return of income. The assessee-society has received corpus donations and shown in the balance sheet under the head ‘corpus fund’. During the course of assessment proceedings, the AO has observed that the assessee has received donations/voluntary contributions. During the asst. yr. 2014-15, the assessee has not filed the 12A registration certificate and therefore the provisions of s. (11)(1)(d) donations received are exempt from tax only if the assessee-society is registered under s. 12A of the Act. That the voluntary contributions received for a specific purpose cannot be regarded as income under s. 2(24)(iia) of the Act since they are capital receipts and tied up grants for specific purpose. The AO considered the submissions, but not accepted the same and observed that case-laws relied on by the assessee are different. Accordingly, the amount received by the assessee is added to the total income of the assessee.  The CIT(A) held that assessee has received corpus donations are outside the scope of s. 2(24)(iia), the same cannot be brought to tax even the trust is not registered under s. 12AA of the Act and allowed the appeal of the assessee.  the Revenue was in appeal before the Tribunal.
The tribunal held that the donations/voluntary contributions received by the assessee society was outside the taxations, even for the period prior to its registration under s. 12AA. Hence, the AO was directed to delete the disallowance/addition made  in this regard." Thus, the appeal filed by the Revenue was dismissed. --- ITO vs. HOSANNA MINISTRIES.[2020] 23 ITCD Online 141 (VISAKHAPATNAM )