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TMI Blog2012 (9) TMI 843X X X X Extracts X X X X X X X X Extracts X X X X ..... on can be said to be anonymous. The income tax authorities were not right in holding that the amount received by the assessee as donations was not “anonymous donations” within the meaning of Section 11(3) because the receipts issued by the assessee trust were still in the custody of the department as the receipt books were impounded in the course of the survey and no confirmations were required to be filed by the assessee. In these circumstances the Tribunal held that Section 68 cannot be applied as the amount has already been shown by the assessee as income - no substantial question of law arises out of the order of the Tribunal - in favour of assessee. - ITA 534/2012 - - - Dated:- 18-9-2012 - MR. S. RAVINDRA BHAT MR. R.V. EASWAR J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s levied separately. However, the amount spent on purchase of capital assets has to be allowed in computing the total income as application of income. Therefore, this ground has been decided in favour of the assessee. 7.1 The ld. DR submitted that the ld. CIT (Appeals) erred in coming to this conclusion in as much as he did not take into account the provision contained in section 13(7). This provision prohibits deduction under section 11(1)(a) in respect of anonymous donations. On the other hand, the ld. Counsel for the assessee relied on the decision of the ld. CIT (Appeals) and the submissions made before us regarding the anonymous donation. 7.2 We have considered the facts of the case and submissions made before us. It has already be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipt books were impounded in the course of the survey and no confirmations were required to be filed by the assessee. In these circumstances the Tribunal held that Section 68 cannot be applied as the amount has already been shown by the assessee as income. The Tribunal referred to the judgment of this Court in Director of Income Tax (Exemption) v. Keshav Social and Charitable Foundation, (2005) 278 ITR 152. 4. The aforesaid discussion would show that if the Revenue s appeal is accepted, the assessee would be brought to income tax but at the same time the capital expenditure will have to be allowed as a deduction as application of income. Further, the donations, as held by the Tribunal, cannot be assessed as the income under Section 68 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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