The amendment brought in section\u00a012A\u00a0by the\u00a0Finance Act, 2014, with effect from October 1, 2014 by way of insertion of first proviso to section\u00a012A(2)\u00a0is significant to establish the need for registration of a trust to claim exemption under section\u00a011. Registration of the trust is mandatory. The intention of the amendment is to confer the benefits of exemption under section\u00a011\u00a0on genuine trusts which are registered under section\u00a012AA. The conditions laid down under sections\u00a011\u00a0and\u00a012\u00a0shall apply even to trusts, which are not registered under section\u00a012AA.<\/p>\n
On the questions whether the corpus donations in the form of voluntary contributions made with a specific direction that they would form part of the corpus of the trust were exempted under section\u00a011(1)(d)\u00a0in the absence of registration of the trust under section\u00a012AA.\u00a0 Dismissing the appeals the Court held that the contributions towards the corpus fund with specific directions could be treated as income of the assessee under section\u00a02(24)(iia)\u00a0since the assessee was not a registered charitable trust under section\u00a012AA\u00a0though the assessee did not claim exemption under section\u00a011. Donations to the non-registered assessee could be treated as income under section\u00a056(2)(v). (AY. 2007-08, 2008-09, 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11 : Property held for charitable purposes-Trust not registered-Corpus fund in form of voluntary contributions made with specific direction-Liable to tax as income-Equity and taxation cannot co-exist. [S. 2(24)(iia), 11(1)(d), 12A, 12AA, 56(2)(v)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-28225","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7lf","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=28225"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28225\/revisions"}],"predecessor-version":[{"id":28226,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28225\/revisions\/28226"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=28225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=28225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=28225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}