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2018 (7) TMI 2336 - ITAT DELHIExemption u/s 11 - assessment of trust - whether the donations were anonymous or not in terms of section 115BBC? - HELD THAT:- The provision of section 115 BBC provides that any income by way of anonymous donation shall be taxed in the manner provided in clause (i) and (ii) of sub section (I). Sub section (3) mainly provides the meaning of ‘anonymous donation’ which has been defined as voluntary contribution, where the person receiving such contribution does not maintain any record of the identity indicating the name and address of the person making such contribution and such other particulars as maybe prescribed. Ostensibly in the present case the assessee has given the identity by giving the name and address of the corporate of the companies who have given the donations and not only that, their copy of the audited balance sheets, profit and loss account, income tax return, bank statement, etc., has been provided of all the 9 corporate entities and their return before the Registrar of the Companies. Hence the conditions which have been laid down in sub section 3 and onus which is cast upon the person receiving the donation has been fully discharged. The entire case of the AO is that the donation received by the assessee trust by these companies were in fact were operated by accommodation entry providers and they do not have much income and the bank statement revealed that the amounts even come in their bank account from various bank accounts which has been inferred by the AO that assessee must have routed its unaccounted money through various donors in order to get donation. Such observation perhaps would have been relevant if the same would have been scrutinised u/s 68. Here the provision clearly states only the anonymous donation should be taxed and if the donations have been come from known sources, then it cannot be treated as anonymous donations, therefore, the Ld. CIT(A) has rightly held that the donation received by the assessee cannot be taxed u/s 115BBC(I) . The other observation of the Ld. CIT (A) was that AO is justified for making such addition u/s 68, however still the assessee will get exemption u/s 11, because the same have been applied for charitable purpose. This finding has become purely academic which does not require any adjudication. Decided against revenue.
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