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2021 (7) TMI 248 - AT - Income TaxExemption u/s.10(23) denied - anonymous donations received by any assessee or entity u/s.115BBC - HELD THAT:- Since the assessee trust is enjoining registration u/s.12A as well as u/s.80G(vi) of the Act, which entitles the trust exempt from tax u/s.11 to 13 of the Act and also benefit of Section 10(23). Books of accounts including ledger shows entry of receipt of donations and counter entry of cancellations of transactions on the very same date and all original receipts along with counterfoil are also available with the trust in its record and original photocopy of which have been placed on record. If any decision has been taken by the trust in the interest of students dropping its idea of receiving donations from the weaker section of the society living in the tribal area and consequently entries were made neutralizing and nullifying the transaction of receipt of the donation, then it has to be presumed that no amount was received by the trust and entries made in the books of accounts and availability of the original receipts alongwith counterfoil also supports the explanation and stand of the assessee. I As during the course of hearing a specific query by the bench, ld. DR in all fairness accepted that neither the AO nor the CIT(A) has made any exercise to verify from the so-called donors as to whether they actually gave any donation to the assessee trust or not. When the assessee trust is submitting all the receipts, relevant books of accounts and documentary evidence before the revenue authorities and without verifying the same objectively selecting some entries and leaving aside the other entries and documentary evidence even without verifying the actual receipt of donation from the so-called donors, if the revenue authorities proceeds to make any addition treating the same as anonymous u/s.115BBC of the Act, then have no hesitation to hold that the addition made is without any basis and keeping aside the sound principles of tax jurisprudence, the same cannot be held as sustainable - Appeal of the assessee are allowed and the AO is directed to delete the addition.
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