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TMI Blog2015 (7) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... or the ld. CIT(A), therefore, this ground is devoid of merit and we reject the same. 3. So far as ground No.2 is concerned, it is noticed that during the course of assessment proceedings the Assessing Officer has noted that the assessee-trust claimed to have received donation amounting to Rs. 19,10,400/-. All these donations were received in cash and the assessee was required to furnish the names and address of the donors. Assessee had furnished the list containing names and address of 250 persons, out of which 75 persons had given donations exceeding Rs. 10,000/- and the total of such donation comes to Rs. 18.50 lakhs. The Assessing Officer has issued a letter under section 133(6) of the Income-tax Act, 1961 (hereinafter called in short "the Act") to 20 such donors on test check basis. In response thereto, six persons have responded, from whom Rs. 1.28 lakhs was received. The Assessing Officer has further observed that rest of the persons have failed to furnish income-tax acknowledgement and source of cash donations. The Assessing Officer accordingly considered the donation of Rs. 1.28 lakhs received from six persons to be genuine and for the rest of the donation of Rs. 16.87 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 68 of the Act while making the addition; whereas provisions of section 68 of the Act cannot be invoked in case of donation received by the society, as the receipts was taken into the total income of the assessee. This aspect was examined by this Bench of the Tribunal in the case of ACIT-1, Kanpur vs. M/s Sahyog Jan Kalyan Samniti, Kanpur (supra), in which the Tribunal has held that provisions of section 68 of the Act cannot be invoked for making addition. The relevant observations of the Tribunal are extracted hereunder for the sake of reference:- "6. Having carefully examined the orders of the lower authorities in the light of the rival submissions and the judgments referred to by the parties, we find that the assessee has some force in his arguments on merit. The issue of addition u/s 68 of the Act on account of corpus donation is squarely covered by the order of the Tribunal pertaining to assessment year 2005-06 in which corpus donation was introduced under similar circumstances and the Tribunal has deleted the additions having observed that once a particular credit or donation is already declared by the assessee, the same cannot be added again. The relevant observation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee had in fact disclosed the donations of Rs. 18,24,200/- as its income and it could not be disputed that all receipts, other than corpus donations would be income in the hands of the assessee. There was thus full disclosure of income by the assessee and also application of the donations for charitable purposes. It was not in dispute that the objects and activities of the assessee were charitable in nature since it was duly registered under the provisions of section 12A. 20. Similarly, the Hon'ble AP High Court in the case of CIT vs. Hyderabad Secunderabad Foodgrains Association Ltd, 175 ITR 574 (supra) has held as under: "The Income-tax Officer denied exemption to the assessee under section 11 of the Income-tax Act, 1961, for the assessment year 1977-78. On appeal, the Commissioner of Income-tax (Appeals) held that the assessee was a public charitable institution and set aside the assessment with a direction to the Income-tax Officer to consider whether the assessee satisfied the requirements of sections 12, 12A and 13 of the Income-tax Act, 1961. The Tribunal held that the Commissioner of Income-tax (Appeals) ought not to have given the direction. On a reference: He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 68 of the Act cannot be invoked, disallowance can be made by invoking the provisions of section 115BBC of the Act, as the details of the donors are not available. This aspect was also examined by the Tribunal in the aforesaid case and the Tribunal has held that when the details of donors are filed, the donation cannot be called to be anonymous donation. The relevant observations of the Tribunal are extracted hereunder for the sake of reference:- "10. Having carefully examined the orders of the lower authorities and the relevant provisions of the Act, we find that after introduction of section 115BBC, the unanimous donation received by the assessee is also taxable in the hands of the recipient trust. The unanimous donation has also been defined in sub section (3) of section 115BBC of the Act. For the sake of reference, we extract section 115BBC of the Act as under: "115BBC. Anonymous donations to be taxed in certain cases. (1) Where the total income of an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or any hospital or other institution referred to in sub-clau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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