TaxTMI 
TaxTMI 
2023 (5) TMI 273
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....nsideration on 24/06/2015 declaring total income at 'Nil'. Case of assessee was selected for scrutiny through CASS followed by issuance of notice u/s 143(2) & 142(1) of the Act. During the course of assessment proceedings, the Assessing Officer noted from the income & expenditure account that the assessee had shown income at Rs.2,61,72,000/- which was received as donation and incurred expenses to the tune of Rs.2,22,47,910/- which resulted in income over expenditure at Rs.39,25,443/-. The Assessing Officer asked the assessee to submit relevant details in respect of the genuineness of the donations, to which compliance was made by the assessee and a list containing names of 1371 persons was furnished who had made the donations. The Assessing Officer noticed that none of the donations exceeded Rs.20,000/-. For further verification, out of the 1371 persons whose names were provided by the assessee, the Assessing Officer issued letters/summons to 109 persons seeking confirmation of donation to the assessee, however, the same remained unserved or persons denied to have known or given donation to the assessee. Resultantly, the Assessing Officer held the claim of the assessee of having re....
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....ade for anonymous donation on the ground that confirmations from donors had not been filed. He prayed that the order of the ld. CIT(A) be upheld. 8. We have heard rival contentions and perused the material available on record. The assessee trust is registered u/s 12AA of the Act engaged in charitable activities. It received donations amounting to Rs. 2,61,72,000/- during the year under consideration from 1371 parties. The ld. Assessing Officer on account of suspicion and for the purpose of conducting further verification in respect of the genuineness of the donations, issued summons to 109 parties seeking confirmation of the donations. The Assessing Officer not being satisfied with the replies received and in certain cases as the notices remained unserved, drew adverse inference and proceeded to treat the total donations of Rs.2,61,72,000/- received from 1371 parties as bogus. 9. The fact that the assessee is a charitable trust and its only source of income is from charitable activities and it is wholly and exclusively engaged in carrying out charitable activities, has not been disputed by the Assessing Officer. The accounts of the assessee have been duly audited and an audit rep....
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....n a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed.] [emphasis supplied] 10.1. In light of the above, we find that sub-Section (3) to Section 115BBC of the Act specifically defines an "anonymous donation" as any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2, 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. Further it is pertinent to mention that no other particulars have been prescribed under this proviso. The assessee in the present case has duly complied with the requisites by maintaining the records of the donors in the form of their names and addresses thereby not making them anonymous donations and resultantly not attracting the rigours of the Section 115BBC of the Act. The ld. Assessing Officer had conducted due verifications and enquiry at his end but has failed to point out anything constructive leading to the conclusion that the donations in question were anonymous. 11. The ld. CIT(A), ....
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....of the assessment folder comprised of such verification / compliances to notice u/s 133(6) received and placed on assessment record subsequent to the completion of the assessment proceedings which are concluded at page 328. Having examined the contention of the appellant from records and findings it correct the addition u/s 115BBC of the Act was carefully considered. The appellant submitted that the provisions of the section were not violated as donations cannot be categorized as anonymous donation. Section 115BBC reads as under: "Anonymous donations to be taxed in certain case 115BBC. (1) Where the total income of an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub- clause (iiiad) or sub-clause (vi) or any hospital or other institution referred to in sub- clause (iiiae) or subclause (via) or any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in sub-clause (v) of clause (23 C) 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- (i) the ....
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....es. 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 maybe prescribed." To be excluded from the definition of expression "anonymous donation" the person receiving the voluntary contributions referred to in section 2(24) (iia) is required to maintain a record of identity indicating the name and address of the 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 only. In the instant case, the appellant had provided the required details as called for by the A.O., to prove the identity of the donors and thereafter the A.O. has also conducted independent enquiry to verify these details. It is on record that most of the replies in affirmative were received although subsequent to the completion of assessment proceeding....