2018 (8) TMI 2017 - AT - Income Tax

Assessment of trust - Addition u/s 115BBC of anonymous donation - HELD THAT - We find that the assessee is registered u/s 12A - During the assessment year the Assessing Officer observed that the assessee had received donation and voluntary contribution therefore the assessee was required to furnish complete names and addresses of the persons from whom donations and voluntary contributions were received. The assessee furnished the complete list of donors with names and addresses. As per the provisions of section 115BBC(3) the anonymous donation means 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. D. R. was not able to demonstrate as to what other particulars have been prescribed for recording the voluntary contributions or donations. The record maintaining the name and address of the persons has already been maintained by the assessee and during assessment proceedings a complete list was provided to the Assessing Officer - Decided against revenue.

Summary

Issues:
Appeal against deletion of addition of ?95 lakh under section 115BBC of the Act for anonymous donation.

Analysis:
The Revenue appealed against the deletion of an addition of ?95 lakh under section 115BBC of the Act for anonymous donation. The Revenue contended that the assessee failed to provide address proof of all donors, leading the Assessing Officer to treat the donation as anonymous. However, the assessee had submitted names and addresses of 1953 donors, all contributing less than ?5,000, and had provided some address proofs. The Assessing Officer treated the entire donation as anonymous due to incomplete address proofs. The assessee argued that it had complied with the requirement by submitting a complete list of donors with addresses. The ITAT found that the assessee, a registered entity under section 12A, had maintained records of donors' names and addresses. The ITAT noted that the definition of anonymous donation required maintaining the identity of donors, which the assessee had done. The ITAT referred to case laws supporting the assessee's position and upheld the CIT(A)'s decision to delete the addition.

The main issue revolved around whether the provisions of section 115BBC were violated by the assessee and if the ?95,00,000 donations received could be categorized as anonymous. Section 115BBC aimed to prevent unaccounted money flow through anonymous donations to charitable institutions. The definition of anonymous donation required maintaining donor identity details, and the ITAT found that the assessee had fulfilled this requirement. The ITAT cited case laws and decisions supporting the maintenance of donor identities as prescribed under section 115BBC. The ITAT upheld the CIT(A)'s decision to delete the addition, emphasizing that the assessee had established the donors' identities as required by the law.

In conclusion, the ITAT dismissed the Revenue's appeal, affirming the CIT(A)'s decision to delete the addition of ?95,00,000 under section 115BBC. The ITAT found that the assessee had complied with the requirements by maintaining records of donor identities, thereby not qualifying the donations as anonymous. The ITAT's detailed analysis and reliance on relevant case laws supported the decision to dismiss the appeal and uphold the deletion of the addition.