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2020 (4) TMI 613 - ITAT COCHINAddition u/s 68 - Exemption u/s 11 - voluntary donation received by the assessee-trust towards corpus fund - HELD THAT:- As held in the case of S.RM.M.CT.M.Tiruppani Trust v. CIT [1998 (2) TMI 3 - SUPREME COURT] under section 11(1) of the Act, every charitable or religious trust is entitled to deduction of certain income from its total income of the previous year. The income so exempt is the income which is applied by the charitable or religious trust to its charitable or religious purposes in India. This is, of course, subject to accumulation up to a specified maximum which, in the present case, was 25%. To obtain the benefit of the exemption u/s 11 assessee is required to show that the donations were voluntary. In the present case, the assessee had only disclosed its donation, but failed to submit a list of donors. Complete list of donors was not filed or that the donors were not produced, does not necessarily lead to the inference that the assessee was trying to introduce unaccounted money by way of donation receipts. Section 68 have no application to the facts of the case if the assessee furnishes the name and address of the donors to the Assessing Officer. In the present case, the assessee has received ₹ 33.80lakh in three assessment years as stated in the earlier paragraph that out of this, ₹ 11.90 lakh was relating to assessment year 2008- 2009. The Assessing Officer, out of this amount, considered ₹ 8.80 lakh as unaccounted income of the assessee - assessee has not filed the confirmation letters from the two donors. If the assessee is able to file the confirmation letters stating that it was received the amount as donation towards corpus fund of the assessee-trust, then there cannot be any application of section 68 of the Act. Being so, if there is a disclosure of this income in the hands of the assessee as corpus fund and applied the same is for charitable purposes for which the assessee-trust is created, and also the assessee-trust is having due registration u/s 12A AO cannot invoke the provisions of section 68 so as to sustain the addition - remit the entire issue under dispute to the files of the Assessing Officer with a direction to the assessee to prove that it was received the amount as donation towards corpus fund of the assessee-trust. - Decided in favour of assessee for statistical purposes.
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