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2014 (11) TMI 350 - AT - Income TaxApplicability of section 115BBC Addition of donations Donations made can be treated as anonymous or not - Held that:- The names of the donors along with their addresses were furnished before the Investigation Wing of the department and were also recorded in the books produced by the assessee before the AO - such donations cannot be classified as "anonymous donations" as per the provisions of section 115BBC(3) of the Act - the only requirement u/s. 115BBC(3) is that the names and addresses of the donors are to be recorded - CIT(A) has wrongly applied the provisions of section 68 in the case of the assessee by stating that the recipient society should also be in a position to identity the donors and establish the capacity to give a donation of the amount mentioned against their names following the decision in Hans Raj Samarak Society Versus Assistant Director of Income-tax (Exemptions), Trust Circle-II, Delhi [2011 (9) TMI 369 - ITAT DELHI] - the CIT(A) erred in confirming the addition of ₹ 12,50,000 as anonymous donations attracting the provisions of s. 115BBC Decided in favour of assessee. Expenses u/s 40(a)(ia) disallowed Applicability of provision of section 10(23C) Held that:- The total receipts reflected in the Income & Expenditure Statement as tuition fees was ₹ 82,89,000 - with respect to suppression of receipts, the AO has to thoroughly verify and examine and arrive at the amount over and above the actual fees accounted for - the eligibility for the assessee u/s 10(23C) is to be determined only after such exercise by the AO, the receipts are at ₹ 82,89,000 and if the suppression of the receipts which totals to ₹ 18,24,000 is being reduced on verification by the AO then the total receipts might figure at less than ₹ 1 crore, which would entitle the assessee for the benefit of section 10(23C) - if the assessee is exempted u/s. 10(23C) the income is not computed u/s 30 to 38 in order to attract disallowance u/s. 40(a)(ia) Decided in favour of assessee. Addition of expenses Capital expenses or not Held that:- The assessee submitted that exemption has been claimed u/s. 10(23C)(iiiad) which states that income received from any university or other educational institution existing solely for educational purposes will not form part of the total income thus, the matter is remitted back to the AO for adjudication Decided in favour of assessee. Unexplained cash credits u/s 68 Held that:- The assessee filed the confirmation letter which stated that the sources of the creditor are the compensation from the Andhra Pradesh Government - FAA in spite of the evidences filed before him ignored the fact of compensation received by the creditor - Copies of confirmation letter, land acquisition draft order, Bank statement of the assessee filed before the First Appellate Authority were filed before Tribunal also - the assessee has proved the cash credit with sufficient evidence Decided in favour of assessee.
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