TMI Blog2019 (5) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... tion u/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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ishan Kumar Jhanb v/s ITO and Anr (Punjab Haryana) 17 DTR 249 V. M/s Sejai International Ltd v/s CIT Meerut (All.) Appeal No.306 of 2010. VI. CIT Vs Durga Prasad More, 82 ITR 540(SC) VII. CIT Vs P. Mohnakala, 291 ITR 278 (SC) VIII. CIT Vs Sumati Dayal, 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 incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned AO further noted that it is out of the imagination that when the assessee was having bank accounts then why the assessee would retain this amount as cash in hand as on the close of the year. Therefore he held that the so-called donation is for assessee‟s undisclosed money. Based on this the learned AO held that deposits by way of donation are nothing but the unexplained cash credit in terms of the provisions 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 rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing officer on examination of the various details with respect to these donors and stated that there are several infirmities in the details furnished by the assessee, he made an addition of the about some u/s 68 of the income tax act and also applying the provisions of section 115BBC of the act. The learned CIT A has categorically recorded a finding that above donation is normal donation which has been offered by the assessee as income. The claim of the AO is that same is a corpus donation. 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 becaus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 10(23C)(v) ; 10. The anonymous donations will not be covered if donations received by any trust or institution created or established wholly for religious purposes or donations received by any trust or institution created or established for both religious as well as 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. 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
