TMI Blog2021 (2) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... se donations cannot be termed as anonymous donations and hence cannot taxed u/s. 115BBC of the Act. - Decided in favour of assessee. - ITA No. 195/Lkw/2020, ITA No. 242/Lkw/2020 - - - Dated:- 9-2-2021 - Shri A.D Jain, Vice President And Shri T.S. Kapoor, Accountant Member For the Appellant : Shri Rakesh Garg, Advocate For the Respondent : Shri Ajay Kumar, DR ORDER PER T.S. KAPOOR, A.M.: These two appeals have been filed by the assessee as well as by the Revenue against the order of ld. CIT(A)-1, Lucknow dated 11.03.2020. The grounds of appeal taken by the assessee as well as by the Revenue are reproduced below: ITA No. 195/Lkw/2020. 01. Because the CIT(A) has erred on facts and in law in upholding the addition of ₹ 64,000/- and ₹ 1,00,000/- respectively, being amounts received towards donation from two students; treating them to be anonymous donation u/s.115BBC of the Act, which addition is contrary to facts bad in law and be deleted. 02. Because complete details of the donation received as required as per section 115BBC having being maintained and furnished, the CIT(A) was not justified in treating the donation of ₹ 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The Ld. CIT(A) has erred in law and on facts in deleting the addition of the corpus donation from students/others persons amounting to ₹ 1,19,36,200/- as anonymous donation u/s 115BBC of the Income Tax Act, 1961 by the AO even when the alleged donors have failed to furnish their annual income and also failed to justify their source of income through any corroborating documents during the course of assessment proceedings as well as during the preparation of remand report despite being specifically asked. 5. The Ld. CIT(A) has failed to appreciate the facts of the case in disallowing the addition of the non-corpus donation from students/others persons amounting to ₹ 71,64,000/- as anonymous donation u/s 115BBC of the Income Tax Act, 1961 by the AO even when the plea taken by the assessee during the course of assessment proceedings, that the students studying in the school are minors and belong to the poor family of villagers and farmers, is self contradictory to the assessee and clearly proves that the said donations are anonymous donations. 6. The Ld. CIT(A) has failed to appreciate the facts of the case in disallowing the addition of the corpus donatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onations from students to whom notices were not issued. However, he upheld the addition in respect of three persons from whom the confirmations were not received/notice came back unserved. The ld. AR submitted that complete details of persons from whom donations were received were furnished and in this respect our attention was invited to paper book Pgs. 6 to 8 where the breakup of donations received from students as well as others were placed. Our attention was also invited to paper book Pgs. 9 to 24 where the complete addresses of students from whom donations were received was placed and we were also taken to list of donors where besides names and addresses, PAN numbers were also mentioned. It was submitted that since assessee had maintained complete list of names and addresses, Section 115BBC was not applicable. In this respect our attention was invited to provisions of Section 115BBC of the Act wherein the anonymous donation has been defined. Our specific attention was invited to sub Section 3 to sub Section 115BBC wherein it has been mentioned that where the assessee maintains name and complete addresses of the donors the same cannot be said to be anonymous donations. The ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 71,88,800/-. The AO further observed that the assessee had received donations to the tune of ₹ 16,62,000/- from various persons. In order to verify the genuineness of these receipts, the AO issued notices u/s. 133(6) of the Act to 21 persons on random basis out of which, confirmations were received from 19 persons and from two persons confirmation were not received and the letters were received back. From confirmation letters the AO observed that the replies were sent from Lucknow whereas the assessee was situated at Hardoi and therefore, he treated the donations as in genuine. However, out of total of ₹ 16,62,000/- received from donors the AO treated only ₹ 1,87,000/- as anonymous donations whereas all other donations received from students were held to be anonymous donations and taxed u/s. 115BBC of the Act. The ld. CIT(A) however allowed relief to the assessee substantially and confirmed additions to the tune of ₹ 1,64,000/- only from three persons. While giving relief to the assessee, the ld. CIT(A) allowed relief in respect of 19 students in respect of whom the confirmations were received and also allowed relief in respect of students to whom no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tribution 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. 5. As per the above definition, the person receiving the donations has to maintain the record of the identity indicating the name and addresses of the persons making such donations. To come out of the definition of anonymous donation, the only requisite condition is that names and addresses from whom the donation has been received has to be maintained. The section is silent thereafter unlike Section 68 which casts an obligation on the assessee to explain the amount credited in the books along with the explanation to the satisfaction of AO. The moment the person receiving the donations provides the record containing the names and addresses of the persons from whom the donation has been received such donation comes out of the definition of anonymous donations. In the present case, it is undisputed fact that assessee had maintained complete record regarding identity of donors along with their addresses. Such information has been filed before us also in the form of paper book which is placed Pgs. 6 to 24. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an anonymous donation as provided under section 115BBC of the act. Therefore on this count also we uphold the order of the learned CIT-A. 6.1 Similarly the ITAT, Lucknow Benches in ITA No. 15/Lkw/2015 vide order dated 10.07.2015 in para 8 held as under: 8. In other cases also similar view was expressed by the Tribunal. In the instant case, since the assessee has furnished complete details of the donors along with PAN,' the said donation cannot be called to be anonymous donation. Therefore, provisions of section 115BBC of the Act cannot be invoked. Keeping in view the totality of the facts and circumstances of the case, we are of the considered opinion that no disallowance can be made either under section 68 of the Act or under section 115BBC of the Act. Therefore, we find no infirmity in the order of the Id. CIT(A) who has rightly deleted the addition. 6.2 The Lucknow Bench in ITA No. 665/Lkw/2016 vide order dated 31.08.2018 has dismissed the appeal filed by the Revenue by holding as under: 5. We have heard the rival parties and have gone through the material placed on record. We find that the assessee is registered u/s 12A of the Act vide order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utions will not be taxed. Anonymous donation has been defined in the new section to mean any voluntary contribution referred to in section 2(24) (iia) of the Act, 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. To be excluded from the definition of anonymous donations the person receiving the donation is required to maintain the record of identity indicating the name and address of contributor and such other particulars as may be prescribed. Since no other particulars have been prescribed under the provisions the person receiving the donation is under obligation to maintain the identity of donors indicating the name and address. On perusal of the details filed by appellant it is seen that the appellant has not only furnished the names and addresses of donors but also furnished a number of other details in respect of some donors viz ID proofs and address proofs. In view of above it is held that appellant has established the identity of donors as provided u/s 115BBC of IT. Act, 1961 and the donations received by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
