Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 735 - AT - Income TaxExemption u/s 11 - corpus fund received - AO noted that all the persons denied having given any donation to the assessee thus addition proposed u/s 68 - HELD THAT:- Assessing Officer accepted the genuineness of the transactions in respect of seven persons out of the said 17 persons from whom loan was received - evidences produced in respect of 6 persons as detailed at S.Nos. 3,5,7, 8, 12 & 14 . The Ld. DR could not point out any discrepancy in the findings of the CIT(A) on this issue. The observations made by the Tribunal in the circumstances of the case of the assessee in respect of some of the unexplained corpus donations can not be applied in respect of unexplained loans. In a loan case, the assessee has to establish beyond reasonable doubt the identity and creditworthiness of the creditor and genuineness of the transaction. Application of income does not change the character of receipt. If the receipt is not from the property held for charitable purposes, the same will not be eligible for exemption u/s 11, irrespective of its application for charitable purposes or otherwise. In view of this, the addition made by the Assessing Officer in respect of alleged loans received from remaining four persons at Serial No. 2, 6, 10 and 16 as given on the chart forming part of the order of CIT(A) amounting to ₹ 85,88,616/- is confirmed. Revenue's Ground is partly allowed.
|