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2023 (5) TMI 1300 - ITAT MUMBAIAddition u/s 69A r.w.s. 115BBE - amount received by the assessee as donation - assessment of trust - HELD THAT:- Section 69A can be applied only in those cases where the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery, or valuable article is not recorded in the books of account, if any, maintained by him for any source of income. In this case whatever may be the amount received by the assessee as donation in various forms, were duly entered in the books of accounts and tallied with bank statement also. Assessee’s books were subject to audit and duly audited accounts were produced before the authorities for verification. Rather, amount tried to be covered u/s. 69A was pointed out by the department from assessee’s own books of accounts and bank statements. Since otherwise also assessee was not found with any money, bullion, jewellery, or other valuable article conditions prescribed in section 69A can’t be applied. Thus we are of the considered view that section 69A has no applicability in the present case, hence section 115BBE of the Act. Accordingly, Ground Nos. 1 & 2 raised by the assessee is allowed. Interest claimed on Corpus fund - We set aside the matter back to AO for verification with a direction that if interest so claimed by the assessee pertains to corpus fund, then the same has to be allowed as accretion to corpus fund, otherwise it will be deemed to be the income of the assessee subject to the benefits available in section 12A. Anonymous donations received - As reverting to the definition of anonymous donations under sub-section (3) of section 115BBC, it is found that it has been mentioned that anonymous donations means voluntary contributions where the person receiving such contributions does not maintain a record of the identity indicating the name and address of the person making such contribution and charitable trust as in the case of the assessee, it is generally not only difficult but also not possible to maintain such type of record. A perusal of the entire section 115BBC shows that the provisions of said section are not applicable to the institutions like that of assessee-trust as the same are meant to check the inflow of unaccounted/black money into the system with a modus operandi to make out as a part of the accounts of the institutions like university, medical institutions where the problem relating to the receipt of capitation fees, etc. is generally highlighted. Under such circumstances, there is no justification on the part of the Commissioner (Appeals) in taxing the offerings received in the hundis/donation boxes as income of the assessee u/s 115BBC.
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