TMI Blog2019 (1) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... me by the assessee and also the application of the donations for charitable purposes. It is not in dispute that the objects and activities of the assessee are charitable in nature since it is duly registered under the provisions of section12A. Further, the AO has invoked provisions of section 115BBC to hold that the impugned donations were anonymous. As in the case of DIT (Exemptions) vs. Keshav Social & Charitable Trust (2005 (2) TMI 84 - DELHI HIGH COURT) held as complete list of donors was not filed or that the donors were not produced, does not necessarily lead to the inference that the assessee was trying to introduce un-accounted money by way of donation receipts. As the assessee had disclosed the donation as income, the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned, we note that the averment of the Ld. AR is correct that depreciation has not been claimed as an application of income by the assessee and, therefore, there is no question of adding back the same to the income of the assessee. The assessee succeeds on this ground also and while setting aside the order of the Ld. CIT (A) on this issue, we direct the AO to delete this addition also. - Decided in favour of assessee - ITA No.-4109/Del/2015 - - - Dated:- 7-1-2019 - Shri G.D. Agrawal, Hon ble Vice President And Shri Sudhanshu Srivastava, Judicial Member For the Assessee : Sh. K.P.Garg, CA For the Revenue : Shri G Johnson, Sr.DR ORDER PER SUDHANSHU SRIVASTAVA, J.M.: This appeal is filed by the assessee against orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000/- to the income of the assessee u/s 68 of the Act in view the deeming provisions of Section 115 BBC of the Act. In addition, the AO also made in addition of ₹ 45,44,814/- being depreciation said to be claimed by the assessee. The assessee s appeal before the Ld. CIT (Appeals) was also dismissed. Now, the assessee is before the ITAT and has challenged the action of the lower authorities in treating the impugned donations as anonymous donation u/s 115BBC of the Act. The assessee is also challenging the action of the lower authorities in adding back the depreciation of ₹ 45,44,814/- to the income of the assessee. 3. The Ld. Authorised Representative, appearing on behalf of the assessee, drew our attention to the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower authorities, submitted that the fact remained that the donors were not produced before the Assessing Officer and, therefore, the AO was correct in adding back the amount to the income of the assessee. 5. We have heard the rival submissions and have also perused the material available on record. It is seen that the AO has invoked section 68 of the Act read with section 115BBC to hold that the donations were anonymous. In our considered view, Section 68 of the Act has no application to the facts of the assessee because the assessee has duly disclosed the donations as its income. There was, thus, a full disclosure of income by the assessee and also the application of the donations for charitable purposes. It is not in dispute that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded to treat the same as anonymous donations only for the reason that the notices u/s 133(6) of the Act were returned unserved and the assessee did not produce the donors when it was called upon to do so. However, since the donations were duly treated as income by the assessee, section 68 could not have been invoked in view of the judgment of the Hon ble Delhi High Court in the case of DIT (Exemptions) vs. Keshav Social Charitable Trust (supra). Further, the assessee s case also does not fall in the mischief of section 115BBC because as per sub section (3), anonymous donations are those donations for which no details of the donors are maintained by the assessee. Thus, it follows that if the details are maintained, the donations can ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
