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TMI Blog2019 (5) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... ade u/s 68 read with Section 115BBC of the Income Tax Act is deleted. 2. The learned AO has raised the following grounds of appeal:- "1. Whether in the facts and circumstances of the case the Ld. CIT (A) has erred in law in deleting the addition of Rs. 1,62,65,000/- made by the A.O. u/s 68 read, with section 115BBC of the IT Act, 1961 ignoring the following facts and law in particular: - (a) That the signatures on the confirmations and affidavits of the donors filed during the course of assessment proceedings were forged. (b) That the handwriting expert engaged by the AO in the course of assessment proceedings opined that the signatures of the donors on the confirmations did not tally with the signatures on the affidavits. (c) That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he trust was created registered on 18/10/2007 and is running in educational Inst under the name and style of Shri Shiv Venkateswara Education and Social Welfare Trust at Meerut . It filed its return of income on 30/9/2009 declaring nil income. During the course of assessment proceedings the learned assessing officer asked the assessee to prove the identity, creditworthiness, genuineness of the donors. The assessee submitted that the most of the donors are villagers from the neighboring periphery of the Institution ranging from INR 1000 - 18,000 and is received in cash. The assessee submitted the identity proof of voter ID cards, the copy of concerned company in the respective confirmation of these donors. Assessee also submitted that all t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt on different dates but the total donations has been shown by the assessee as cash in hand on 31/3/2009. The learned AO further noted that it is out of the imagination that when the assessee was having bank accounts then why the assessee would retain this amount as cash in hand as on the close of the year. Therefore he held that the so-called donation is for assessee‟s undisclosed money. Based on this the learned AO held that deposits by way of donation are nothing but the unexplained cash credit in terms of the provisions of section 68 read with the provisions of section 115BBC of the income tax act and accordingly they are rendered to the income of the assessee under the head income from other sources. The learned assessing offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an 85% has also been achieved by the assessee. Aggrieved by the order of the learned CIT - A the AO is in appeal before us. 5. The learned departmental representative vehemently supported the order of the learned assessing officer and submitted that all the donations received by the assessee are bogus. He further submitted that as assessee has failed to maintain proper record with respect to the donations showing the names and address of the donors, and voluntary contribution received by it it is rightly chargeable to tax as anonymous donation within the meaning of section 115BBC of the act. He relied on the decision of coordinate bench in 151 TTJ 260 (Agra) which has been affirmed by the honourable Allahbad High Court in ITA number 31 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s already been offered as an income. The identical issue arose before the Hon‟ble Delhi High Court in the director of income tax exemption vs Keshav social and charitable foundation 278 ITR 152 wherein the Hon‟ble High Court held that '11. Section 68 of the Act has no application to the facts of the case because the assessee had in fact disclosed the donations of Rs. 18,24,200 as its income and it cannot be disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. There was, therefore, full disclosure of income by the assessee and also application of the donations for charitable purposes. It is not in dispute that the objects and activities of the assessee were charitable in natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y trust or institution referred to in section 11 ; (ii) any university or other educational institution referred to in section 10(23C)(iiiad) and (vi) ; (iii) any hospital or other institution referred to in section 10(23C)(iiiae) and (via) ; (iv) any fund or institution referred to in section 10(23C)(iv) ; (v) any trust or institution referred to in section 10(23C)(v) ; 10. The anonymous donations will not be covered if donations received by any trust or institution created or established wholly for religious purposes or donations received by any trust or institution created or established for both religious as well as charitable purposes other than any anonymous donation made with a specific direction that such donation is for an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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