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2019 (11) TMI 392 - AT - Income TaxAddition on account of donations - whether anonymous donations are subjected to tax as per the provisions of Section 115BBC - whether the donation received by the assessee can be treated as anonymous donation? - HELD THAT:- Conditions and prerequisite for addition u/s 68 and 115BBC of the Act are different. For the purpose of addition u/s 68 of the Act, the assessee has to prove the identity, genuineness and creditworthiness of the person from whom the monies had been received whereas for the purpose of Section 115BBC of the Act, the Act clearly defines that a donation can be treated as anonymous where a person receiving such contribution does not maintain the record of the identity indicating name and address. In the instant case, there is no dispute about the name and address of the parties who have given the donation. The ITRs and the letters from the donors stating that the donation has been given for the trust for conference, and towards the corpus fund. Hence, they cannot be treated as anonymous donations within the provisions of the Act liable to be taxed u/s 115BBC(1) of the Act. Disallowance of the claim of depreciation - Revenue has disallowed the claim on the grounds that the amount utilized for acquiring the assets have already been claimed and allowed u/s 11(1) - HELD THAT:- Hon’ble Supreme Court in the case of Rajasthan and Gujarat Charitable Foundation Pune [2017 (12) TMI 1067 - SUPREME COURT] held that income of a Charitable Trust derived from building, plant and machinery and furniture was liable to be computed in normal commercial manner although the Trust may not be carrying on any business and the assets in respect whereof depreciation is claimed may not be business assets. In all such cases, section 32 of the Income-tax Act providing for depreciation for computation of income derived from business or profession is not applicable. However, the income of the Trust is required to be computed under section 11 on commercial principles after providing for allowance for normal depreciation and deduction thereof from gross income of the Trust. - Decided in favour of the assessee.
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