2021 (2) TMI 707 - AT - Income Tax

Assessment of trust - addition on account of anonyms donation u/s 115BBC - HELD THAT - As all the donations initially flagged by the AO as anonymous donation have been duly verified by way of confirmation, PAN numbers, copies of ITR, copy of bank statement of the donor and found correct both by the AO as well as ld. CIT (A). So, we find no ground to interfere with the impugned findings deleting the addition in question by the ld. CIT (A) by accepting the appeal filed by the assessee. Consequently, the appeal filed by the Revenue is dismissed.

Summary

Issues:
- Addition of anonymous donation under section 115BBC
- Validity of impugned order passed by Commissioner of Income-tax (Appeals)
- Appeal by DCIT seeking to set aside the impugned order
- Verification of corpus donations by AO
- Examination of remand reports by ld. CIT (A)
- Deletion of addition u/s 115BBC by ld. CIT (A)
- Dismissal of Revenue's appeal

Analysis:
The case involved the appeal by DCIT seeking to set aside an order passed by the Commissioner of Income-tax (Appeals) regarding the addition of an anonymous donation under section 115BBC. The Assessee, a society, received corpus donations, out of which a portion was treated as anonymous donation by the Assessing Officer. The ld. CIT (A) deleted the additions, leading to the Revenue's appeal before the Tribunal.

During the proceedings, the ld. CIT (A) examined remand reports submitted by the AO and the rejoinder filed by the Assessee. The AO had initially made the addition under the head of anonymous donation, but subsequent verification revealed that the donations were genuine. The ld. CIT (A) found that the Assessee had maintained complete records of the donors, including confirmation, PAN details, and other relevant documents, which did not fall under the purview of section 115BBC.

The Tribunal noted that all donations flagged as anonymous had been verified with supporting documents and found to be genuine. Consequently, the impugned order deleting the addition was upheld, and the Revenue's appeal was dismissed. The Tribunal also highlighted the need to avoid filing such appeals that lead to unnecessary litigation, emphasizing the importance of conserving time, energy, and resources of the state exchequer.

In conclusion, the Tribunal upheld the decision of the ld. CIT (A) to delete the addition of anonymous donation under section 115BBC, as the donations were found to be genuine and supported by proper documentation. The appeal filed by the Revenue was dismissed, emphasizing the need to avoid futile litigation to save resources.