DWARKADHEESH CHARITABLE TRUST Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THESE two writ petitions raise common questions and can conveniently be disposed of together.

(2.) THE petitioner in each case is a public charitable trust, created under deeds of trust dated August 27, 1970. Each of the petitioners was granted a certificate under Section 80G of the Income-tax Act, 1961, by the Commissioner of income-tax, Kanpur, stating that the donations made to them will be exempt from tax in the hands of the donors.

(3.) THE Income-tax Officer felt that the donations as such were covered by Section 12(2) of the Income-tax Act, 1961, and so were liable to be dealt with under Section 11 of the Act. He required the petitioners to show cause why they should not be so dealt with. THE petitioners filed written explanations stating that the donations received by them constituted the corpus of the petitioner-trusts and that they were not income in their hands but capital receipt, and as such they were outside the purview of Section 12(2) of the Act.