TMI Blog2017 (4) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O for necessary enquiry and verification of the said donations so received by the assessee as to genuineness and also for verifying compliance of the relevant section 115BBC of 1961 Act. - I .T.A. No.2746/Mum/2014 - - - Dated:- 26-4-2017 - SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Shri Dilip J. Thakkar For The Revenue : Shri Sumen Kumar, D.R. ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee, being ITA No. 2746/Mum/2014, is directed against the appellate order dated 10th February, 2014 passed by learned Commissioner of Income Tax (Appeals)- 1, Mumbai (hereinafter called the CIT(A) ), for the assessment year 2010-11, the appellate proceedings before the learned CIT(A) arising from the assessment order dated 22nd March, 2013 passed by the learned Assessing Officer (hereinafter called the AO ) u/s 143(3) of the Income-tax Act,1961 (Hereinafter called the Act ). 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called the tribunal ) read as under:- 1. On the facts and under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to furnish the following information:- a) Copy of letters from donors showing specific direction that the donations are towards Corpus showing. (b) Copies of Receipts issued to donors w.r.t to Corpus Donations. (c) PAN proof of Address of donors . (d) Specify mode of payment viz Cheque/cash. Wherever the donations are claimed to have been received in cash, furnish fresh confirmations for these corpus donations. The assessee trust in reply submitted that the trust received donations totaling ₹ 2,42,26,508/- towards its corpus from about 6500 donors. All these donations were accompanied by letters of directions of the donors that the donations shall form part of corpus fund. The assessee enclosed direction letters from the donors. The assessee also drew the attention of the A.O. to the order u/s 264 dated 22.03.1996 passed by the then Director of Income tax (Exemptions) in assessee s own case for assessment year 1992-93 , whereby the ld. DIT (Exemptions) had allowed the petition u/s 264 of the Act which was filed against the assessment order wherein AO treated donation of ₹ 22,83,688/- as voluntary donations rather than corpus donations as claimed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s who were claimed to be the donors. It was observed by the AO that in each case name of village , Taluka , District is given but complete address is not given and claim of the assessee cannot be verified in the absence of address. It was also observed that none of the letters bear PAN of the donors as claimed by the assessee trust. Under these circumstances, the A.O. rejected these direction letters as an evidence in support of identity and address of donors as mandated u/s 115BBC of 19611 Act and held that exemption u/s 11(1)(d) of the Act is not admissible to the assessee. The AO held that the receipts which were claimed to be treated as voluntary contribution are liable to be taxed u/s 115 BBC of 1961 Act as anonymous donations. The A.O. after going through the object clauses of the assessee trust observed that the assessee trust is not a religious trust . The A.O. held that the assessee failed to establish the identity and address of donors and the AO invoked provisions of section 115 BBC of the Act and denied exemption to the assessee u/s 11 of 1961 Act and taxed the same u/s 115BBC of 1961 Act. Further, it was observed by the AO that the assessee has exercised its option ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is not entitled for benefit of this option and hence an unspent amount of ₹ 1,35,70,000/- during the year was taxed as income under the head Income from other sources by the AO vide assessment order dated 22-03- 2013 passed by the AO u/s 143(3) of 1961 Act. 4. Aggrieved by the assessment order dated 22-03-2013 passed by the DDIT (Exemption)-1(1) i.e. the AO, the assessee carried the matter in appeal before the ld. CIT(A) who rejected the appeal of the assessee on the ground that the third party verification of donors was not possible by the A.O. due to incomplete identity and address of the donors which was vague and general . The ld.CIT(A), therefore, held that the corpus donations of ₹ 2,42,26,508/- received by the assessee trust during the year was assessee s income in the absence of identity and address of the donors being not verifiable as genuineness of the transaction remained unproved , and hence the same could not be considered as corpus donation , thus keeping in view provisions of Section 13(7) of 1961 Act , the said anonymous donations are liable to be taxed u/s 115 BBC of the Act . Similarly, the AO denied the exemption amount of ₹ 1,35, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unspent and it was claimed that the same can be spent in the next year for the purposes of the trust. 7. The ld. D.R. relied on the orders of authorities below. 8. We have considered rival contentions and also perused the material available on record. We have observed that the assessee-trust is registered u/s 12A of 1961 Act with DIT(E) , Mumbai bearing No. TR/25225 and also registered with Charity Commissioner , Mumbai. We have observed that the assessee has shown additions to corpus donations to the tune of ₹ 2,42,26,508/- . The assessee has submitted in paper book filed with the tribunal copies of some of such direction letters of donation issued by the donors whereby instructions are issued by the donors that the donations shall form part of the corpus of the trust. The said letters of donations are placed in paper book page 35-123. The names of the donors were given in the said letters but the addresses and PAN of the donors were not given. These are standard letters which are identical for all the donors. The said letters contained the name of village/taluka/district and State of the donor but the addresses, father s name and PAN of the donors are not there. Anot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regate of anonymous donations received. (2) The provisions of sub-section (1) shall not apply to any anonymous donation received by- (a) any trust or institution created or established wholly for religious purposes; (b) any trust or institution created or established wholly for religious and charitable purposes other than any anonymous donation made with a specific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by such trust or institution. (3) For the purposes of this section, anonymous donation means any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2 , where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed.] The assessee in the instant case could not provide addresses, father s name and PAN of the donors and the assessee is also not a religious trust to be covered under exception. The assessee has come forward with a request that if an opportunity is given to the assessee, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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