TMI Blog2019 (1) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax (Appeals) Panaji, pertaining to the assessment year 2010- 11. 2. The grounds of appeal reads as under: 1. The order of the learned authorities below in as far as it is against the appellant is opposed to law, facts, equity, and weight of evidence and circumstances of the case. 2. The appellant denies itself liable to be taxed on an Income of ₹ 5,98,814/- as against total income of Rs. Nil returned by the appellant on the facts and circumstance of the case. 3. The learned Commissioner of Income-tax [Appeals] is not justified in law and on facts in confirming the addition made by the learned assessing officer amounting to ₹ 5,98,814/- as an anonymous donation by invoking the provisions of section 115 BBC of the Act without appreciating that the appellant's case falls under the provisions of sub-section [2] of section 115 BBC of the Act, and consequently no additions could have been made under section 115 BBC of the Act, on the facts and circumstances of the case. 4. The learned Commissioner of Income-tax [Appeals] erred in confirming the findings of the learned assessing officer without appreciating that the Dabbi Kanike [Box Collection] whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO noticed that the assessee has credited a sum of ₹ 33.59.836/- as voluntary contributions (donations) during the previous relevant to the assessment year 2010-2011. The assessee was asked to produce complete details of such contributions. The assessee produced the relevant ledger accounts containing details of contributions received along with relevant head of contributions. The assessee also certified that out of the above contributions, a sum of ₹ 5,98,814/- was received through Dabbi Kanike (box collections) which is usually kept in front of Swamiji, Garbha Gudi, main door, etc. At the time of performing poojas, special occasions, the devotees would generally opt to pay some amount in the box kept which would be usually in the denomination of Re.1/-, ₹ 5/-, ₹ 10/-, ₹ 100/- and above and the Trust authorities will open such box collections in front of the panchas and the amount collected is counted ₹ 5,98,814/- represents such collections, It was submitted to the AO that though this is an anonymous collection yet the same are brought on record and spent on the objects of the Trust. The assessee's AR submitted that such contribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has received anonymous donation of ₹ 5,98,814/- is not denied, Therefore, the tax liability has be calculated as per provisions of section 115BBC(1)(i) by providing basic exemption of ₹ 1 lakh in tax, because the total income computed by the assessee and even by the AO results in (-) minus figure, i.e., ₹ 5,26,082/- and there is no tax liability. Therefore: 5% of total donations received are ₹ 16,79,918/- or ₹ 1 lakh whichever is higher as per (i)(A) and (B) and c(ii) the amount of it with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations, i.e., NIL. because the total income has resulted in a negative figure. In any case I agree that the assessee's case falls under section 115BBC{2)(b) and the anonymous donation requires to be brought to tax because there is no specific direction that the anonymous donation shall be utilized for any university or other educational institutions. The anonymous donation received is general in nature and therefore,' requires to be brought to tax as per section 115BBC(1)(i) A B and (ii). The AO has taxed it directly at 30% on an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V. Chandrasekhar, Advocate and appraised him about the entire facts. The present counsel sought the files for his study and guides the appellant as regard to the correct approach. The present counsel after verifying the papers and studying the entire files suggested and advised the appellant to file an appeal before the Hon'ble Tribunal, against the order passed by the learned CIT [A], dated 30/03/2016 and not against the order of CIT [A] dated 29/01/2018 dismissing the rectification application filed by the appellant. 10. In view of the above fact, that the Appellant has been a victim of wrong professional advice on the matter and consequently the Appellant could not file the appeal before this Hon'ble Income Tax Appellate Tribunal, well in time i.e., within 60 days from the date of receipt of order i.e., 03/05/2016 i.e., the Appellant ought to have filed the appeal on or before 02/07/2016 and by the time the Appellant sought the present counsel's proper professional advise, there arose a delay of about 626 days in filing this present appeal before this Hon'ble Income-tax Appellate Tribunal as per the provisions of the Act. 11. It is humbly prayed that this H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia ) or any fund or institution referred to in sub-clause ( iv ) or any trust or institution referred to in sub-clause ( v ) of clause ( 23C ) of section 10 or any trust or institution referred to in section 11, includes any income by way of any anonymous donation, the income-tax payable shall be the aggregate of- 7[( i ) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donations received in excess of the higher of the following, namely:- ( A ) five per cent of the total donations received by the assessee; or ( B ) one lakh rupees, and 8[( ii ) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received in excess of the amount referred to in sub-clause ( A ) or sub-clause ( B ) of clause ( i ), as the case may be.]] (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 dona ..... 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