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2024 (2) TMI 1222 - AT - Income TaxAssessment of trust - addition made u/s 115BBC on account of anonymous donations - AO has disallowed the donations of more than Rs. 50,000/- for want of PAN and Bank account statements of donors - HELD THAT - 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. Thus 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. Thus the addition made by the AO is not sustainable and the same is deleted.- Decided in favour of assessee. Addition u/s 68 on account of unsecured loans - consequential denial of benefit of section 11 - assessee has now contended that entire receipt including the loan in question has been applied for charitable purpose and therefore, no addition can be made on account of unsecured loans - HELD THAT - As we note that the authorities below have not considered this aspect of the matter as to whether the assessee has applied this amount of loan for charitable purpose and consequently the benefit of section 11 would be available to the assessee of not. Thus we set aside this issue to the record of the AO for proper verification of the relevant fact regarding the utilization of the loan amount as well as details and evidences to be produced by the assessee to satisfy the identity and creditworthiness of the creditors as well as genuineness of the transactions. Decided in favour of assessee for statistical purposes.
Issues Involved:
1. Condonation of delay in filing the appeal. 2. Addition of Rs. 37,89,000/- as "anonymous donation" under section 115BBC of the Income Tax Act. 3. Addition of Rs. 10,00,000/- as unexplained cash credit under section 68 of the Income Tax Act. Summary: Condonation of Delay: The appeal filed by the assessee had a delay of 131 days. The delay was attributed to the death of the Chartered Accountant (CA) representing the assessee, which caused a delay in obtaining the necessary documents. The Revenue did not object to the condonation of delay. The Tribunal found the reasons for the delay to be reasonable and condoned the delay. Anonymous Donations (Rs. 37,89,000/-): The assessee contested the addition of Rs. 37,89,000/- as "anonymous donation" under section 115BBC. The assessee provided the names and addresses of the donors but failed to furnish PAN and bank account statements, which led the Assessing Officer (AO) to treat the donations as anonymous. The Tribunal noted that section 115BBC(3) requires only the maintenance of records indicating the name and address of the donors, not PAN or bank account details. Citing the judgment of the Hon'ble Orissa High Court in People Forum v. CIT, the Tribunal held that the addition made by the AO was not in accordance with the law and deleted the addition. Unexplained Cash Credit (Rs. 10,00,000/-): The AO added Rs. 10,00,000/- as unexplained cash credit under section 68, stating that the assessee failed to prove the identity, creditworthiness of the lenders, and genuineness of the transactions. The assessee argued that the loan amount was utilized for charitable purposes, satisfying the conditions of section 11. The Tribunal found that the authorities below did not consider whether the loan amount was applied for charitable purposes. The issue was set aside to the AO for verification of the utilization of the loan amount and to provide an opportunity for the assessee to prove the identity and creditworthiness of the creditors and the genuineness of the transactions. Conclusion: The appeal was partly allowed. The Tribunal condoned the delay in filing the appeal, deleted the addition of Rs. 37,89,000/- under section 115BBC, and remanded the issue of Rs. 10,00,000/- under section 68 back to the AO for further verification.
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