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TMI Blog2023 (5) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... after considering all the elements and ingredients involved in the present case and hence no reason to interfere with the observation and findings of the CIT(A) and uphold the same. Accordingly, the sole ground of appeal raised by the revenue is dismissed. - I.T.A. No. 103/Pat/2020 - - - Dated:- 3-5-2023 - Dr. Manish Borad, Hon ble Accountant Member And Shri Sonjoy Sarma, Hon ble Judicial Member For the Assessee : Shri Soumitra Choudhury, Advocate For the Revenue : Shri Rupesh Agrawal, Sr. D/R ORDER PER SONJOY SARMA, JUDICIAL MEMBER: The present appeal is directed at the instance of the revenue against the order of the Learned Commissioner of Income Tax (Appeals) - 1, Patna, (hereinafter the ld. CIT(A) ) dt. 10/09/2020, passed u/s 250 of the Income Tax Act, 1961 ( the Act ) for the Assessment Year 2014-15. 2. The sole issue raised by the department before us in the instant lis relates to the deletion of addition of Rs.2,61,72,000/- by the ld. CIT(A) made by the Assessing Officer in the assessment framed u/s 143(3) of the Act on 30/12/2016 on account of alleged anonymous donations made u/s 115BBC of the Act. 3. Brief facts of the case are that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15BC of the Act. 5. Aggrieved, the revenue is in appeal before this Tribunal. 6. The ld. D/R filed written submissions and vehemently argued supporting the order of the ld. Assessing Officer and contended that the donations so received by the assessee to the tune of Rs.2,61,72,000/-, were from anonymous donors as the identity of the donors was not proved before the Assessing Officer in response to the summons issued to 110 persons out of the list of 1371 donors provided by the assessee and hence the same was rightly added by the Assessing Officer u/s 115BBC of the Act. 7. On the other hand, the ld. Counsel for the assessee submitted that the assessee is a trust registered u/s 12AA of the Act engaged in charitable activities. During the course of assessment proceedings on 09/12/2016 the assessee was asked to furnish names of persons from whom donation has been received. In compliance, the assessee had furnished names and complete address of 1371 persons from whom donation totaling to Rs. 2,61,72,000/- has been received during the year under consideration. However, the ld. Assessing officer sent letters only to 109 persons seeking confirmation of donation to the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n referred to in sub-clause (iiiae) or sub-clause (via) or any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in sub-clause (v) of clause (23C) of section 10 or any trust or institution referred to in section 11, includes any income by way of any anonymous donation, the income-tax payable shall be the aggregate of 49 [(i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donations received in excess of the higher of the following, namely: (A) five per cent of the total donations received by the assessee; or (B) one lakh rupees, and 50 [(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received in excess of the amount referred to in sub-clause (A) or sub-clause (B) of clause (i), as the case may be.]] (2) The provisions of sub-section (1) shall not apply to any anonymous donation received by (a) any trust or institution created or established wholly for religious purposes; (b) any trust or institution created or established wholly for religious an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .12.2016 that the appellant was unable to satisfactorily explain the donations and the donors were perhaps fictitious persons. The assessing officer was of the opinion that the appellant had tried to introduce unaccounted money into its books byway of donations and, therefore, the amount of Rs.2,61,72,000/- was treated as anonymous donation under section 115BBC of the Income Tax Act, 1961. During the course of these proceedings, the appellant contended that he had furnished details including names and complete addresses of all the 1371 persons from whom donation totalling Rs.2,61,72,000/-. had been received. The appellant further contended that the A.Q. sent letters/ notices u/s 133(6) of the Act to only 109 persons seeking confirmation of donations and that most of them have either personally or by registered post confirmed the same. When the appellant was confronted with the observations made by the A.O. that letters sent to 109 persons were either not complied with till the completion of assessment proceedings or the person denied having given the donation, the appellant submitted that as the matter was getting barred by limitation the A.O. did not wait for the replies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haritable purposes other than any anonymous donation made with a specific 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. Sub-section 1 provides that where the total income of an assessee being a person in receipt of income on behalf of any trust or institution referred to in section 11 includes income by way of anonymous donation, the income tax is payable by it on this amount as prescribed in the section. Sub-section 3 defines the expression anonymous donation in an exhaustive manner to be a case where the person receiving the donation does not maintain records of identity indicating the name and address of the contributor and such other particulars as may be prescribed. No other particular has been pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as applicability of provisions of section 68 of the Act is concerned, it has been held by various Tribunals and High Courts that once donation received was taken as income of the appellant which was applied for charitable purposes, provisions of section 68 of the Act cannot be invoked. This inference is further reinforced by the following judicial pronouncements : 1. Income Tax Officer-II(3) Lucknow Vs. M/s Saraswati Educational Charitable Trust, ITAT, Lucknow 'A' Bench in ITA No.776/LKW/2014. 2. DIT(Exemptions) Vs. Keshav Social Charitable Trust (Delhi)278 ITR 152 3. Shri. Vivekanand Education Welfare Society ITAT(Delhi) ITA No. f2592/Del/2012 4. Sunder Deep Educational Society Vs. ACIT ITAT (Delhi) ITA No. 2428/Del/2011 5. Income Tax ... vs M/S Tathagat Shiksha Samiti In view of the discussion above and respectfully following the judgments of Hon ble ITAT and High Courts, the addition made by the A.O. amounting to Rs.2,61,72,000/- u/s 115BBC of the Act is hereby deleted. Further, the A.O. is directed to compute the income of the appellant as per provisions of under section 11 of the Act. In the result, the appeal is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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