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TMI Blog2019 (8) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 2,46,540/- as membership fees, receipt of inter-school cocurricular of ₹ 50,300/-, carnival expenses of ₹ 9,72,934/- and donation of ₹ 5,000/-. From the above payments, it is revealed that the assessee has incurred expenditure towards fooding expenses, printing and stationery, xerox courier, prize distribution, bank charges, even expenses, security expenses, promotional expenses, books and periodicals, carnival expenses and misc. expenses and remaining part of utilized funds/receipts has been deposited with the bank as fixed deposit. From receipt and payment account, we are not in agreement with the allegation of the AO that the impugned amounts are anonymous donation. As the assessee has received these amounts f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, this amount deserves to be treated as anonymous donation and the findings of the authorities below to this extent are confirmed. Accordingly, the AO is directed to delete the addition of ₹ 12,69,744/- and balance addition of ₹ 5000/- is upheld. - ITA No.35/Ran/2017 - - - Dated:- 26-7-2019 - Chandra Mohan Garg, JM For the Appellant : Shri Vinay Kr Jalan, FCA For the Respondent : Shri P K Mondal, ACIT, DR ORDER PER: CHANDRA MOHAN GARG: This is an appeal filed by the assessee against the order of the Commissioner of Income Tax(Appeals)-Ranchi dated 30.11.2018 for the assessment year 2014-15. 2. The sole issue involved i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned amounts to be donations and contributions and he did not consider the very objective of the trust for which exemption has been granted. Ld A.R. also submitted that the bifurcation of the impugned amount was submitted before the authorities below, which also gets support from the audited receipt and payment account and income and expenditure account, which makes it clear that ₹ 2,46,510/- was received for the inter school debate programme and entry fee of ₹ 50,300/- was received from the participants and ₹ 9,72,934/- was received out of the entry ticket sold for the entrants in the carnival which was arranged in the school of the trust and the said money was collected by the school authority and further given to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order submitted that the impugned sum was nothing but anonymous donation received by the assessee as referred to in sub-clause(iia) of clause (24) of Section 2 of the Act, which provides that where a person receiving said anonymous contribution or donation does not maintain a record of identity indicating the name and address of the persons making such contribution and such other particulars as may be prescribed. Ld D.R. strenuously contended that though some cheque payments appear in the bank statements as expenses but again assessee did not substantiate the claim of expenses through documentary evidences. Therefore, the claim of expenses to the extent of 15% was disallowed to the assessee. Ld D.R. further submitted that section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that these documents clearly reveal that the assessee has received these amounts for specific purpose and during activities conducted by it for achieving the charitable objects of the trust. Ld A.R. submitted that the old Xaverians and present Xaverians students of the school run by the assessee trust participated in the carnival and no other outside students were permitted to attend the carnival. Therefore, it was not the commercial intent or receipts from anonymous donors. Ld A.R. submitted that ex- and present students of the school actually met not only for fun but also to contribute the society for socioeconomic upliftment of society and the citizen of the nation in the carnival. Therefore, the findings arrived at by the AO as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards fooding expenses, printing and stationery, xerox courier, prize distribution, bank charges, even expenses, security expenses, promotional expenses, books and periodicals, carnival expenses and misc. expenses and remaining part of utilized funds/receipts has been deposited with the bank as fixed deposit. From receipt and payment account, I am not in agreement with the allegation of the AO that the impugned amounts are anonymous donation. As the assessee has received these amounts for specific purposes and out of these receipts, the assessee has incurred expenses for prize distribution, carnival expenses and other office establishment expenses, which are necessary for maintaining the office trust. When the assessee is showing that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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