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2023 (1) TMI 894 - AT - Income TaxExemption u/s 11 - addition of corpus fund donation /contribution - AR argued that the corpus donation is not taxable - HELD THAT:- The assessee is not clear in its stand, whether, they received corpus donation.First, the assessee must clarify whether or not they received any such corpus donation, then if received if it is exempted under which provisions of law, particularly in absence of registration under section 12AA, which is condition precedent for seeking such exemption after amendment in section 12A by Finance Act 2007 applicable w.e.f. 01.06.2007. Thus, we do not find any merit in the stand of the assessee. The ratio of case laws relied by the ld AR for the revenue is not helpful to the assessee after the decision of Hon’ble Supreme Court in U.P. Forest Corporation [2007 (11) TMI 303 - SUPREME COURT] The Hon’ble Apex Court clearly held that conjoint reading of section 11,12 & 12A makes it clear that registration under section 12A is a condition precedent for availing benefit under section 11&12. Similar view was taken by Chennai Tribunal in Veeraval Trust [2021 (7) TMI 1084 - ITAT CHENNAI] holding that where assessee trust charitable trust was not registered under section 12AA, voluntary donation received by it with a specific direction to be formed part of corpus of trust would fall within the ambit of Income of trust. In the result, ground No.2 of the appeal is dismissed. Addition of unexplained unsecured loan - HELD THAT:- We find that, though the assessee has proved the identity of the lenders and their capacity by filing the record of agriculturists holding, showing sufficient land holding in their names. However, the entire transaction of unsecured loan is received in cash. Not a single instance of receiving loan through banking transaction is shown to us, the assessee has shown alleged unsecured loan on daily basis. From the figure of unsecured loan ranging from Rs. 10,000/- to 19,000/- on more than 50 occasions is shown only to avoid the rigorous of section 269SS, therefore, such transaction dos not inspire our confidence, hence, we are in agreement with the submission of ld. CIT-DR for the revenue that the genuineness of transaction is doubtful. Thus, all three conditions of Section 68 are not substantiated simultaneously by the assessee. Disallowance of expenses - assessee urged that the disallowance of 10% on limited item are on higher side and may be reasonably restricted - HELD THAT:- We have perused each and every item of expenses, in our view, the ld. CIT(A) after considering each and every item of expenses has already granted sufficient relief and reasonably restricted the disallowance only those expenses which are not verifiable, thus we do not find any justification for further reducing the disallowance. Thus, ground No. 4 is also dismissed.
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