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TMI Blog2020 (1) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... e authorities below are set aside and the entire issue raised by the assessee including voluntary donations, anonymous donations and salary advance said to be received from the staff, etc., are remitted back to the file of the Assessing Officer. The Assessing Officer shall reexamine the matter and bring on record the nexus between the donations and the donors in respect of each donation and there after decide the issue afresh Penalty U/s.271(1)(c) - Unexplained cash deposits - HELD THAT:- Assessee has disclosed the entire receipt of donations. However the Assessing Officer found that it is not a voluntary donation but anonymous donation. The fact that the assessee has disclosed the entire donation and claimed exemption U/s.11 of the Act is not in dispute. When the assessee has disclosed the entire receipt and the expenditure and claimed the same as exempted U/s.11 of the Act, merely because the assessee could not furnish the details of the persons from whom the donations was received, cannot be a reason for concluding that the assessee concealed any part of income or furnished inaccurate particulars. Making a statutory claim U/s.11 of the Act cannot be construed as furnishi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Shri G. Baskar, the Ld.Counsel for the assessee submitted that the assessee is an educational trust registered U/s.12AA of the Income Tax Act, 1961 (in short the Act ). The assessee trust established and managing several institutions such as Medical College, Engineering College, Polytechnic College, Arts Science College, Catering Colleges apart from Schools. During the course of search proceedings, the Revenue authorities found the receipt of voluntary donations from various individuals. The assessee by letter dated 11.01.2016 disclosed the Assessing Officer the receipt of ₹ 5,34,58,159/- being the voluntary donations said to be received from various individuals. However in the books of account, it was found that the assessee claimed only a sum of ₹ 5,31,58,159/- as voluntary donation received. The assessee explained before the Assessing Officer, the assessee received voluntary donation to the extent of ₹ 5.31 crore which consists of ₹ 3.24 crores received in cash and ₹ 2.07 crore received by Demand Draft. The assessee has filed the confirmation letters from the donors. The Ld. AR further submitted that in spite of filing the confirmatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue authorities that the assessee was in the habit of receiving donations. The Ld.DR further submitted that the so called donation said to be received by the assessee is also deposited in the bank account in various branches of several banks. The Ld.DR further submitted that the accountant of the assessee trust was examined. Shri Muthusamy, the Chief Accountant of the assessee trust explained before the Assessing Officer that M/s. Muthukumaran Educational Trust manages 7 educational institutions and M/s. Meenakshi Ammal Trust manages 19 educational institutions. Even though the assessee filed an affidavit before the Revenue authorities, during the course of search operation the assessee admitted that several persons gave voluntary donation by means of demand draft and some of the individuals who gave donation filed confirmation letters, however majority of the donors have not filed confirmation letters. Even though the assessee admitted that the voluntary donation was offered to taxation while filing the return of income, no such anonymous donations were offered for taxation. The Revenue authorities has also examined books of account and fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if they were received from students. It was evident from receipt books and torn vouchers seized from the Trust Office vide ANN/CS/MAT/B D/S1/1 to 5 From the above observation of the Assessing Officer for the assessment year 2013-14, an impression was created as if they were collected from students. However, it is not known whether such donations were collected from the students over and above the fees prescribed by the High Level Committee constituted by the State Government headed by the retired Judge of High Court. 6.1 It is a known fact that the State Government has constituted a High Level Committee headed by a High Court Judge for determining the fees for the professional colleges. Once the fee was prescribed by the High Level Committee, the assessee is expected to collect only those fees fixed by the Committee. In this case, the seized material as referred to in Para No.3.2.1 of the assessment order for the assessment year 2013-14 gives an impression that the amount was collected from the students. However, it is not known that such donations were collected from students or any other party who are related to the students at the time of admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to the Ld.AR, the assessee has recorded the entire receipts in the books of account and it was deposited in the bank accounts. The Assessing Officer claims that it is anonymous donations. However, the assessee claims that it is tuition fees collected from the students and the deposit collected from the outpatients from the medical college and dental college. According to the Ld.AR, only the classification or the source for the deposit is in dispute. The fact that the assessee has disclosed the entire receipts before the Assessing Officer is not in dispute. Since the amount was collected from the students and the out patients and the same was deposited in the bank account and the assessee claims the same as exempted U/s.11 of the Act. Therefore, it is neither the case of concealment of income nor furnishing any inaccurate particulars. Merely because the assessee could not explain the receipt of money to the satisfaction of the Assessing Officer, it does not mean that the assessee furnished any inaccurate particulars or concealed any part of the income. Therefore the CIT(A) is not justified in confirming the penalty levied by the Assessing Officer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han the searched person, the assessment has to be made U/s.153C of the Act. Therefore the provisions of Section 271AAA of the Act cannot be made applicable to a person other than the searched person. 10. We have considered the rival submissions on either side and perused the material available on record. Admittedly there was cash deposit in the bank account. The Assessing Officer at Page No.2 of the impugned order reproduced the submission of the assessee which indicates the cash deposit to the extent of ₹ 17,86,93,107/-. The assessee claimed before the Assessing Officer that ₹ 5,67,33,606/- was from opening cash on hand. However the Assessing Officer found that there was a cash deposit of ₹ 18.79 crores at Page No. 4 of the impugned order. The assessee has not maintained any proper books of account. Even though the Assessing Officer found that the cash deposit was ₹ 18.79 crores, he found that income sought to be evaded was ₹ 12,19,59,501/-. Accordingly he levied penalty. Therefore, it is obvious that the opening cash to the extent of ₹ 5,67,33,606/- said to be in the hands of the assessee was a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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