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TMI Blog2019 (11) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Rs. 45,50,386 made by the A.O. on account of donations and allowing part relief of Rs. 8,49,614/- only as against the total addition of Rs. 54,00,000/-(as per corrigendum Rs. 45,50,386/-). 2. That on the facts and circumstances of the case, the Ld. CIT(Appeals) is not justified and has erred in law in upholding the disallowance of claim of depreciation of Rs. 9,18,645/-." 3. The question is to be decided is that on the facts of the case whether the ld. CIT (A) is right in holding that the anonymous donations are subjected to tax as per the provisions of Section 115BBC of the Act? And on the facts of the case whether the donation received by the assessee can be treated as anonymous donation. 4. Section 115BBC of the Income Tax Act r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecific direction that such donation is for any university or other educational institution or any hospital or other medical institution run by such trust or institution. (3) For the purposes of this section, "anonymous donation" means any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2 , where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed.]" 5. As per the provisions of Section 115BBC of the Act a receipt/donation is considered anonymous when the person receiving the contribution does not maintain a record of a) identity b) address. The tax rate is 30% a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e persons or group of same persons. * The details submitted by the assessee regarding the three balance sheets which does not through any light over the donation and their capacity. The same are obtained from the web site of ministry of corporatizes affairs or from registrar office. Income expenditure has not been given in the balance sheet. The details of return have not been given. * Assessee could neither produce the donors nor telephone numbers nor were even current addresses were provided. The other details as submitted by assessee had not come from the donors but were retrieved from internet accessing the website of ministry of corporate affairs. * The plea of assessee, having transaction made through bank account, does not hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions and prerequisite for addition u/s 68 and 115BBC of the Act are different. For the purpose of addition u/s 68 of the Act, the assessee has to prove the identity, genuineness and creditworthiness of the person from whom the monies had been received whereas for the purpose of Section 115BBC of the Act, the Act clearly defines that a donation can be treated as anonymous where a person receiving such contribution does not maintain the record of the identity indicating name and address. In the instant case, there is no dispute about the name and address of the parties who have given the donation. The ITRs and the letters from the donors stating that the donation has been given for the trust for conference, and towards the corpus fund. Henc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income in the year of acquisition? It was held by the Bombay High Court that section 11 of the Income-tax Act makes provision in respect of computation of income of the Trust from the property held for charitable or religious purposes and it also provides for application and accumulation of income. On the other hand, section 28 of the Income-tax Act deals with chargeability of income from profits and gains of business and section 29 provides that income from profits and gains of business shall be computed in accordance with section 30 to section 43C. That, section 32(1) of the Act provides for depreciation in respect of building, plant and machinery owned by the assessee and used for business purposes. It further provides for deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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