Section 11 of the Income-tax Act, 1961—Charitable or religious trust—Onetime fee paid by members who are aware that it could be spent by assessee only towards capital purposes was in the nature of corpus donation and not taxable as income.

Facts: The main grievance of assessee is against the action of CIT(A) in confirming the action of AO, who treated the receipt of development fees as undisclosed income of the assessee and further disallowed the benefit u/s. 11.

Held, that assessee society had received contribution towards development fund from the students, apart from the tuition fees, with the clear understanding that it shall be solely used for creation of capital asset necessary for achieving the educational objects of the assessee society and therefore formed part of the corpus and therefore, not in the nature of revenue receipts. AO is accordingly directed to re-compute the income of the assessee society after excluding the development fees of Rs. 19,39,000/- from the purview of Section 11. Ground of the appeal therefore stands allowed. - VIDYA BHARATI SOCIETY FOR EDUCATION & SCIENTIFIC ADVANCEMENT V/s ASSTT. CIT - [2020] 182 ITD 282 (ITAT-KOLKATA)