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2022 (10) TMI 119 - AT - Income TaxAssessment of trust - Addition u/s 68 - donation received by the assessee religious trust from various donors - assessee has explained the source of cash and also relying on the provisions of Section 115BBC (2) - HELD THAT:- Facts show that assessee is religious trust. In the case of the assessee trust, the addition was made u/s 68 of the Act of the sum, which is already disclosed as income by the assessee trust in the nature of donation. In this case, the survey was conducted by the income tax department. The donation received by the assessee religious trust from various donors is reflected in the donation receipts, which were impounded during survey proceedings. The amount of donation received is treated as receipts in the Income and Expenditure account as voluntary contribution. According to the provisions of Section 68 if any sum is found credited in the books of accounts of the assessee including the trust, the nature and source of such credit is required to be explained to the satisfaction of the learned assessing officer. Otherwise, it may be added under Section 68 of the Act. There is no dispute on this aspect. It applies to all assesses without any exception. Even in the case of a charitable trust, which has offered income in its income and expenditure account in the form of voluntary donation, if such trust fails to explain the source of such voluntary contributions, section 68 of the Act may apply. Earlier decision holding that section 68 does not apply to voluntary contribution were rendered where there was no tax disparity in income taxed as normal income and income as unexplained cash credit under Section 68 of the Act. In the impugned cash where the receipts were impounded by survey team, income offered as voluntary contributions and purpose of such donation is explained, it cannot be added under Section 68 of the Act. Provisions of Section 115BBC were enacted to tax such donations in hands of certain charitable trust and institutions at the rate of 30%. However, sub-section 2 (b) of the Act excludes the trust established woolly for religious and charitable purpose from rigors of that Section. This is also explained in paragraph number 25 of circular number 14/2006 dated 28th December, 2006. In the above aspect and following the decision of the Hon'ble Delhi High Court [2015 (9) TMI 558 - DELHI HIGH COURT] CIT (A) has deleted the addition. We do not find any infirmity in the order of the CIT (A) deleting the above addition - Accordingly, ground no. 1 of the appeal is dismissed.
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