2020 (9) TMI 962 - AT - Income Tax

Assessment of trust - anonymous donations receipts - AO invoking the provisions of section 115BBC in absence of requisite details of the donors which have contributed the said amount to the assessee trust - HELD THAT - Ledger contains the identity of the donors in terms of name and address and other requisite particulars as prescribed as so sought by the AO is not clear but it is a matter of record that the said ledger was produced before AO and is part of the assessment records and therefore, doesn t qualify as an additional evidence. T These details so submitted by the assessee needs to be duly examined and basis such examination, a finding should be clearly recorded as to whether and to what extent, the donations so received qualify as anonymous donations or not - we set aside the matter to the file of ld. CIT(A) to consider the details so submitted by the assessee and decide the matter afresh on merits as per law including the contention of the assessee regarding applicability of section 115BBC after providing reasonable opportunity to the assessee. Computation of income in terms of section 11 and 12 - This matter is also set aside to the file of the ld. CIT(A) to decide the same afresh after providing reasonable opportunity to the assessee.

Summary

Issues involved:
1. Application of Rule 46A and dismissing the appeal.
2. Treatment of voluntary contribution as anonymous donation under section 115BBC.
3. Calculation of income of trust being charitable under sections 11 and 12 of the Act.

Analysis:
1. The appeal was filed against the CIT(A)'s order, challenging the application of Rule 46A and the dismissal of the appeal. The CIT(A) upheld the AO's decision to treat a sum as income under section 2(24)(iia) due to lack of explanation from the appellant, leading to the addition of the amount. The appellant failed to provide additional evidence under Rule 46A during the appellate proceedings. The Tribunal set aside the matter to the CIT(A) for a fresh decision based on the details submitted by the appellant.

2. The issue of treating the voluntary contribution as an anonymous donation under section 115BBC was raised. The AO treated the contribution as such due to insufficient details provided by the appellant. The appellant argued that the details were submitted to the AO, which was confirmed later. The Tribunal directed the CIT(A) to re-examine the details submitted by the appellant to determine the nature of the donations and their taxability under section 115BBC.

3. Regarding the calculation of income under sections 11 and 12 of the Act, the matter was set aside along with the other issues for the CIT(A) to reconsider after providing a reasonable opportunity to the assessee. The Tribunal disposed of the appeal based on the directions given for each issue, allowing for a fresh examination of the case by the CIT(A) in light of the submissions made by the appellant.

This judgment highlights the importance of providing detailed explanations and evidence during assessment proceedings and appeals, as well as the need for authorities to thoroughly examine the facts before making tax-related decisions.