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2019 (5) TMI 1057

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..... /s 68 of the above donation cannot be made. Whether a normal donation or a corpus donation, cannot be termed as anonymous donation u/s 115BBC? - HELD THAT:- Sub-section (3) defines “anonymous donation” to mean any voluntary contribution referred to in section 2(24)(iia), where a person receiving such contribution does not maintain a record consisting of the identity of the person making such contribution indicating the name and address of the person and such other particulars as may be prescribed. We asked whether the central board of direct tax as prescribed any particulars which is required to be maintained by the assessee trust, the answer was no. We also did not find any such prescription about what kind of particulars the assessee trust is required to maintain. Therefore, it is apparent that at present the simple requirement is maintaining the name and address of the donors. In the present case, the assessee has already given much more detail then the name and address of the donors. Therefore with respect to the donation from 1038 persons the assessee has shown their name and address along with other particulars. It is not the case of the revenue that assessee has .....

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..... 214, ITR 801 (SC) IX. ITO Vs Diza Holdings Pvt. Ltd. 255 ITR 573 (Kerla) 2. Whether in the facts and circumstances of the case the Ld. CIT (A) has erred in law in holding that the section 115 BBC of the I.T. Act 1961 inserted by the Finance Act 2006 w.e.f. 01/04/2007 was not applicable to the case despite clear mandatory provisions contained therein to tax entire such amount under the pretext that the donations were declared in terms of section 11,12 and 13 of the I.T. Act 1961 3. In the facts and circumstances of the case the order of the Commissioner of Income-tax (Appeals) may be set aside and that of the AO restored. 3. The brief facts of the case shows that assessee is a society which was duly registered under the societies registration act 1960 and also under section 12 double a of the income tax act. The trust was created registered on 18/10/2007 and is running in educational Inst under the name and style of Shri Shiv Venkateswara Education and Social Welfare Trust at Meerut . It filed its return of income on 30/9/2009 declaring nil income. During the course of assessment proceedings the learned assessing officer asked the assessee to prove the identity, creditworthiness, g .....

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..... isions of section 68 read with the provisions of section 115BBC of the income tax act and accordingly they are rendered to the income of the assessee under the head income from other sources. The learned assessing officer further denied the benefit of section 11 and 12 of The Income Tax Act. Consequently the assessment order u/s 143 (3) of The Income Tax Act was passed on 30/12/2011. 4. The assessee aggrieved with the order of the learned assessing officer preferred an appeal before the learned CIT - A. The learned CIT appeal noted that assessee has placed an application under rule 46A of the income tax act wherein they submitted the confirmation and the evidences received from the donors. The assessing officer was also granted an opportunity to make representation. The learned CIT -A held that that these are not the corpus donations but in fact the donation which are duly recorded and assessee has shown as its income in the audit report. He therefore held that the entire discrepancy noted by the learned assessing officer remains of no consequences and the assessee has himself shown these items as income in the income and expenditure account. He therefore held that provisions of se .....

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..... ation. Corpus donation is never credited to the income and expenditure account of the trust whereas the normal donation is credited to the income and expenditure account as income. If a normal donation is doubted by the AO about its genuineness, and identity of the donors, the addition cannot be made u/s 68 of the income tax act in the case of the trust as it has already been offered as an income. The identical issue arose before the Hon‟ble Delhi High Court in the director of income tax exemption vs Keshav social and charitable foundation 278 ITR 152 wherein the Hon‟ble High Court held that 11. Section 68 of the Act has no application to the facts of the case because the assessee had in fact disclosed the donations of ₹ 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, therefore, full disclosure of income by the assessee and also application of the donations for charitable purposes. It is not in dispute that the objects and activities of the assessee were charitable in nature, since it was duly registered under the provisions of section 12A of the Act. 8. Ther .....

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..... n receiving such contribution does not maintain a record consisting of the identity of the person making such contribution indicating the name and address of the person and such other particulars as may be prescribed. We asked whether the central board of direct tax as prescribed any particulars which is required to be maintained by the assessee trust, the answer was no. We also did not find any such prescription about what kind of particulars the assessee trust is required to maintain. Therefore, it is apparent that at present the simple requirement is maintaining the name and address of the donors. In the present case, the assessee has already given much more detail then the name and address of the donors. Therefore with respect to the donation from 1038 persons the assessee has shown their name and address along with other particulars. It is not the case of the revenue that assessee has not maintained and provided these details to the assessing officer. In view of this we do not find that the donation received by the assessee falls into the definition of anonymous donation. Hence on the applicability of the provisions of section 115BBC of the income tax act we find that the lear .....

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