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TMI Blog2021 (7) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... has been taken by the trust in the interest of students dropping its idea of receiving donations from the weaker section of the society living in the tribal area and consequently entries were made neutralizing and nullifying the transaction of receipt of the donation, then it has to be presumed that no amount was received by the trust and entries made in the books of accounts and availability of the original receipts alongwith counterfoil also supports the explanation and stand of the assessee. I As during the course of hearing a specific query by the bench, ld. DR in all fairness accepted that neither the AO nor the CIT(A) has made any exercise to verify from the so-called donors as to whether they actually gave any donation to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under Section 12A of the Act. The assessee trust filed its return of income on 30.03.2013 declaring total income at Rs.Nil, which was processed u/s.143(1) of the Act. During the course of assessment proceedings, on verification of books of accounts of the assessee, the AO found that there are five entries on 31.03.2011 as donation received in ledger account amounting to ₹ 18,97,271/- and the same are also not reported in Audit Report. It was also found by the AO that there are no entries regarding the details of donor(s) in the ledger account. In reply to the show cause notice issued by the AO, the assessee submitted that amount of ₹ 18,97,271/- with regard to donation entry was wrongly made by the accountant of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rified by the AO. With regard to query of AO in respect of anonymous donation, the ld. AR submitted that there was a wrong entry and the assessee has not received donations and the donations were not realized and the entry of donations has been cancelled. It was also submitted by the ld. AR that the name and address of the donors were mentioned in the receipts and mere mention of the donations in the money receipts does not amount to collection as the money receipts were not issued to anybody. Further the ld. AR submitted that when the entries have been reversed to the account, the addition cannot be made under Section 115BBC of the Act. It was also the contention of the ld. AR that although the money receipts discloses different dates but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat these all facts and relevant documents and entries of the books of accounts were shown to the authorities below and were not included in the audited report but these facts were not rightly appreciated by the authorities below in the right perspective, therefore, the impugned addition has been made in the hands of the assessee without any justified reason and basis. Ld. Counsel also submitted that the AO only took note of credit entry made regarding proposed receipts of donation but did not pay any heed or attention to the counter entry on the debit side when the idea was dropped by the office bearer of the trust for receiving donations from trust students. Ld. Counsel strenuously contended that it is the duty of the revenue authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is entitled for exemption u/s.10(23) of the Act and if the impugned amount is also included to the actual receipts then also total amounts of receipt would be less than ₹ 1 crore, therefore, there would be no tax impact on the assessee and if the impugned amount is also tax free then what is the good reason for the trust to hide the donations which has actually received by it. Ld. Counsel submitted that neither the AO nor the ld. CIT(A) has made any exercise to verify these facts from the donors whose names and addresses were available with them to enquire as to whether they actually gave the donations to the assessee trust or not, therefore, the action of the authorities below is not only unreasonable but also not susta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d availability of the original receipts alongwith counterfoil also supports the explanation and stand of the assessee. I am also of the considered view that during the course of hearing a specific query by the bench, ld. DR in all fairness accepted that neither the AO nor the CIT(A) has made any exercise to verify from the so-called donors as to whether they actually gave any donation to the assessee trust or not. When the assessee trust is submitting all the receipts, relevant books of accounts and documentary evidence before the revenue authorities and without verifying the same objectively selecting some entries and leaving aside the other entries and documentary evidence even without verifying the actual receipt of donation from the so- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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