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Assessee has raised the ground that the CIT(A) erred both on facts and in law in upholding the actions of the AO in denying the benefit of the exemption under section 11 of the Income Tax Act 1961 ("the Act").

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Sec. 11 & 13 of Income Tax Act, 1961—Charitable Purpose— In the absence of any allegation or proof as to the assessee undertaking any activities in the nature of trade, commerce or business, donations received by the assessee forms part of the corpus of trust and thus capital receipt are not liable to tax and the objects of the assessee clearly establish that they are in the nature of providing education, medical relief and relief to the poor and no evidence is available on record to say that the assessee has been providing services in the nature of business, therefore, corpus donation is a capital receipt irrespective of whether the institution enjoys the benefit of Section 11 or not, but particularly in this case, it is consistently held that assessee is entitled to exemption under section 11, therefore, the question of subjecting the corpus donations to tax does not arise. - HAMDARD NATIONAL FOUNDATION (INDIA) V/s ASSTT. CIT - [2020] 82 ITR (TRIB) 164 (ITAT-DELHI)