9911796707
TMI Blog2024 (2) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... ay. Ld. Sr. counsel has submitted that the delay of 131 days in filing the present appeal is due to unavoidable circumstances which were beyond the control of the assessee. Ld. DR has not objected to the contention of delay. Accordingly having considered the reasons explained by the assessee for delay in fling the appeal we are satisfied that the assessee was having a reasonable cause for delay in filing the present appeal and accordingly the same is condoned. The assessee has raised following grounds of appeal: "1. The Ld. Assessing Officer has erred in law and on facts in making the addition of Rs. 37,89,000/- to the total income of the appellant on account of treating donations as the "anonymous donation" u/s. 115BBC of the Income Tax Act. 2. That the Ld. A.O has erred in making the addition on account of *anonymous donation" despite the fact that appellant has satisfactorily proved the identity of donors as referred u/s. 115BBC of the Income Tax Act, 1961 by providing the details of the name, address, occupation of donors, mode of payment of donation etc. 3. That the Id. A. O has erred to consider that the sum of Rs. 37,89,000/- is beyond the purview of the exemption u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt has held that the assessee furnished record of the identity indicating name and address of the persons making contribution as required under sub-section (3) of section 115BBC and accordingly the addition was deleted. He has relied upon the following decisions: 1. M/s. Gian Sagar Educational and Charitable Trust, Chandigarg vs. DCIT, Central Circle 29, New Delhi order dated 19.10.2023 in ITANo.3801/Ind/2016 2. DCIT(E) Bhopal v. Mayank Welfare Society, Indore dated 29.10.2021 in ITANo.232/Ind/2017 3. Income Tax Officer, Ward-1, Exemption vs. Aishwarya Foundation Patna dated 03.05.2023 passed in ITANo.103/Pat/2020) 4. People Forum v. CIT 295 taxman 433 5. On the other hand, Ld. DR has submitted that the details provided by the assesse are not satisfactory to ascertain identity of the donors and therefore, the AO asked the assesse to furnish PAN and Bank account statement of the donors to establish the identity of the donors. He has further contended that the assessee has given incomplete address of the donors as a common address is shown in a bunch of donors which is incomplete. He referred to the list of donors as produced by the assessee and pointed out that there are s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e identity indicating the name and address of the person making such contribution. The assessee produced name and address of the donors but the AO has treated the donations in respect of person who contributed more than Rs. 50,000/- for want of PAN and bank account statements. As it is clear from section 115BBC(3) that the statute does not require the assessee to keep PAN and bank account statement of the donors but requires only maintaining record of identity indicating name and address of the person making contribution/donation. In the case in hand the assessee has furnished the list of donors giving name and address but the AO was not satisfied with the detail furnished by the assessee and asked the assessee to furnish the PAN and bank account statement of the some of the donors where the assessee has not furnished. Accordingly in the facts and circumstances of the case when section 115BBC(3) does not require specific documents to be maintained by the assessee except maintaining record of identity maintaining name and address then the addition made by the AO is not in accordance with the provisions of section 115BBC of the Act. The Hon'ble Orissa High Court in case of Peoples Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in claiming exemption of the donations from being chargeable to income tax. 7. Facts found by the Commissioner and the Tribunal clearly show that the assessee had furnished record of the identities indicating name and address of persons making the contributions. Revenue has not been able to demonstrate further requirement by prescribed particulars, as mentioned under sub-section (3) in section 115-BBC. As such, we answer the question in the negative and in favour of appellant (assessee)." 9. Accordingly in the facts and circumstances of the case and following judgment of Hon'ble Orissa High Court (supra) the addition made by the AO is not sustainable and the same is deleted. 10. Ground no.4 to 6 regarding addition made by the AO u/s 68 on account of unsecured loans. At the time of hearing Ld. Sr. Counsel has submitted that the entire loan amount is utilized for charitable purpose and therefore, it satisfied the conditions of section 11 of the Act and consequently the same cannot be taxed. He has referred to the income and expenditure account at page no.11 of the paper book and submitted that the entire receipt including unsecured loans has been applied for charitable purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
