9911796707
TMI Blog2014 (4) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the Revenue and confirming the order dated 09-12-2005 passed by the Commissioner of Income Tax (Appeals)-IV, Bangalore (for short 'the First Appellate Authority') for the assessment years 2001-02 and 2002-03. 2. The brief facts of the case are as follows: The respondent-assessee is a Charitable Trust duly registered under Section 12A of the Act. The income of the Trust was exempted under Section 11 of the Act. For the assessment year 2001-02, the assessee had received the donations towards building fund amounting to Rs.54,38,999/- and for the assessment year 2002-03, the assessee had received a sum of Rs. 12,74,672/-. The return filed by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , being aggrieved by the assessment order passed by the Assessing Officer under Section 143(3) r/w Section 147 of the Act preferred an appeal before the First Appellate Authority challenging the same. It is mainly contended that reopening of the assessment is contrary to law and no reason has been assigned for reopening of the assessment which was already concluded and it is barred by limitation. The major portion of donations towards building fund have been received through cheques. The bank accounts have been made available to the Assessing Authority and the Assessing Officer got verified those matters through the Bankers. Apart from that, the amount received was utilized for the construction of the building and other charitable purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee received the donation towards building fund for the assessment years 2001-02 and 2002-03. The assessee has not disclosed the sources of the said income and failed to furnish the correct names and addresses of the donors. In order to verify with regard to the donations, letters were addressed to the donors; however, none of them appeared. The Trustee of the assessee was also not able to bring any of the donors before the Assessing Officer. In the absence of proof of donation and identity of the donors, these donations towards building fund will be taxed as income from other sources being unexplained credit under Section 68 of the Act. Hence the order passed by the Tribunal is contrary to law. 6. On the other hand, Sri A Shankar, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... religious purposes (Section 11(4) defines property held under trust) and consequently no exemption is allowable in the case of the assessee? 3. Whether Tribunal failed to examine and record a finding regarding the various issues/ground raised before it being the last fact finding authority before approving the finding recorded by the Appellate Commissioner who had proceeded on mere conjectures and surmises and not on admitted facts as erroneously held in the course of the order? 8. We have carefully considered the arguments addressed by the learned counsel for the parties. 9. The records clearly disclose that the assessee is a Charitable Trust duly registered under Section 12A of the Act. For the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Authority set aside the order passed by the Assessing Authority and held that the assessee is entitled for exemption under Section 11 of the Act with regard to the donations received towards building fund. The revenue being aggrieved by the order passed by the Appellate Authority preferred an appeal before the Tribunal, the Tribunal once again examined the matter in detail and held that even though the assessee failed to disclose the names of the donors, the amount which was received as building fund was utilized for charitable purpose. Hence, the assessee is entitled for exemption under Section 11 of the Act and dismissed the appeal. 10. The Division Bench of this Court in a judgment in Belimatha Mahasamsthana Socio Cultural & Educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details of the donations received through Cheques is in accordance with law. Admittedly, the respondent-assessee is the charitable trust. Some of the donors do not want to disclose their names and some of the donations were received through cheques. The donations received for the assessment years 2001-02 and 2002-03 were disclosed in the accounts and while filing the returns those amounts were shown as income. Any voluntary contribution received by a Trust created wholly for charitable or religious purpose shall be deemed to be income derived from property held under the Trust wholly for charitable and religious purpose. However, the said amounts were used for charitable purposes even though the assessee failed to disclose the names and add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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