Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (9) TMI 369 - AT - Income TaxAnonymous donations - name and address have been maintained, which can be seen from the donation receipts - assessee was not able to secure confirmation from all parties - AO has taxed the amount by mentioning that confirmation letters from the donors have not been filed. - Held that:- Such confirmations are not required to be filed for coming to the conclusion as to whether the donation was anonymous or not. Therefore, the case of the revenue regarding taxation of this amount under sub-section (2) fails on this ground itself - Further, the assessee had shown the amount under the building fund, but at the time of filing the return, this amount was added to the income. In the case of DIT (Exemption) v. Keshav Social & Charitable Foundation [2005 (2) TMI 84 - DELHI High Court], it has been held that section 68 has no application because the assessee had disclosed the donation of ₹ 18,24,000/- as its income and it cannot be disputed that all receipts other than corpus donation would be the income in the hands of the n assessee. There was, therefore, full disclosure of income and its application for charitable purposes. Accumalation of income under 11(2) - Time limit for giving information of accumalation - form no. 10 - If during the assessment proceedings the Assessing Officer does not have the necessary information, question of excluding such income from assessment does not arise at all. - Intimation in form no. 10, under Rule 17, setting out the prescribed particulars has to be furnished before the completion of the assessment because it is necessary that AO must have this information at that time so as to enable him to compute the total income. In absence of such information, he will not be in a position to grant the benefit. Once the assessment is completed, it would be futile to find fault with the Assessing Officer for having included such income in the total income. Contents of form no. 10, which contains stipulation regarding the amount of income to be set apart, the period of accumulation and the purpose for which the income is accumulated or set apart. Filing of the form before assessment is not an empty formality because it is necessary to take into account its contents for computing the income. - the lower authorities rightly refused the benefit of accumulation of income in absence of the filing of form no. 10 before completion of assessment.
|