TMI Blog2014 (4) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... r charitable and religious purpose. Relying upon Director of Income-Tax (Exemption) Versus Keshav Social And Charitable Foundation [2005 (2) TMI 84 - DELHI High Court] the amounts were used for charitable purposes even though the assessee failed to disclose the names and addresses of the donors - the amount was utilized by the Trust wholly for the charitable or religious purposes, the assessee has fulfilled the condition imposed u/s 11 of the Act - Section 11 contemplates that any income derived from property held under Trust wholly for charitable or religious purposes, to the extent to which, such income is applied to such purposes is exempted u/s 11(1)(a) of the Act - the assessee is a charitable Trust and its income is to be exempted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act was issued to the assessee on 11-03-2004 for reopening the assessment. Notices under Sections 143(2) and 142(1) were served on assessee. In response to the said notices, an authorized representative of the assessee appeared before the Assessing Authority and produced all the details. The assessee also objected for reopening of the assessment under Section 148 of the Act. In the balance sheet filed along with the returns, the assessee had made known the donations received towards the building fund and he also furnished the details of the donors, such as their address, mode of payment and date of payment etc. The bank accounts were also made available and contended that major payment was received by way of cheques. There is no cause o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellate Authority after considering the matter in detail found that major portion of the donations were received through cheques and that the amount received was utilized for construction of the building and other charitable purposes. Hence, the said amount is entitled for exemption under Section 11 of the Act. However, the issue of reopening of the assessment was held against the assessee. Accordingly, by its order dated 09-12-2005, allowed the appeal and set aside the order passed by the Assessing Authority in respect of the building donation received. 4. Being aggrieved by the order passed by the Appellate Authority, the Revenue has preferred these two appeals challenging the same on various grounds. The Tribunal after examining t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he major portion of donations were received through cheques. He also submitted that the bank statements along with the account numbers were made available to the Assessing Officer for verification. Some of the donors did not want to disclose their names. The amounts received were utilized for the purpose of construction of the building and other charitable purposes. Hence, there is no violation of Sections 11 and 12 of the Act. In support of his contention, he relied upon the judgment reported in [2011] 336 ITR 694, DIT (Exemptions) v. Sri Belimatha Mahasamsthana Socio Cultural Education Trust [2005] 278 ITR 152 (Delhi), DIT (Exemptions) v. Keshav Social Charitable Foundation; [1982] 138 ITR 564 CIT v. Trustees of Visha Nima Charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequently, the Assessing Authority issued notice under Section 148 for reopening of the said assessment. In pursuance of the notices issued under sections 143(2) and 142(1) of the Act, the authorized representative of the assessee appeared before the Assessing Authority and produced all the documents including Bank accounts. The specific case of the assessee is. that the assessee received donations towards construction of the building and for other charitable purposes of the Trust. The major portion of the donation was received through Cheques. Some of the amounts were received in cash, since some of the donors were not willing to furnish their names. The amount received by way of donations was disclosed in the returns filed and also claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the donors as well as the mode of payment, entitled for deduction under Section 11 of the Act. A similar view has been taken by the Delhi High Court in a judgment in Keshav Social Charitable Foundation (supra). Paragraph 10 of the said judgment reads as under: 10. To obtain the benefit of the exemption under Section 11 of the Act, the assessee is required to show that the donations were voluntary. In the present case, the assessee had not only disclosed its donation, but had also submitted a list of donors. The fact that complete list of donors was not filed or that the donors were not produced, does not necessarily lead to inference that the assessee was trying to introduce unaccounted money by way of donation receipt. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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