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TMI Blog2018 (7) TMI 2336X X X X Extracts X X X X X X X X Extracts X X X X ..... following grounds:- 1 "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the so called donations does not fall in the category of anonymous donation in terms of provisions of section 115BBC(1) and will not be liable to tax u/s 115BBC of the Act, 1961.. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in holding that the assessee has discharged its onus by filling relevant details and document ignoring that a facade of paper identity is created with a false motive. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in holding that just filing of ITR details including P&L a/c and balance sheet is sufficie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies' alongwith the other requisite details like balance sheet, profit and loss account and copy of income tax returns etc. However the AO required the assessee to produce the Directors of all the companies which assessee could not produce. Thereafter summons u/s 131 were issued to the Directors and Inspector of Income Tax was also deputed to serve the summons. However, as noted by the AO, the ITI could not serve the summons on any of these companies as they were not found to be functioning at the given addresses. When confronted with this fact, the assessee provided new addresses of some of the companies and again summon were issued by the AO but the said summons could not be served as they were not found on the addresses so provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ymous donations of Rs. 2,05,00,000/- are in excess of this amount by Rs. 1,45,41,520/-. Therefore, anonymous donations of Rs. 1,45,41,520/- are chargeable to tax u/s 115BBC r/w section 13(7) of the Income Tax Act, 1961." 4. Ld. CIT (A) has deleted the addition after observing and holding as under:- "4.4 I have considered the order of the AO and the submissions of the assessee. It is apparent that the assessee has claimed the receipt to the extent of Rs. 11,91,69,600/- from 120 parties out of which the AO has treated the donation from 9 parties as anonymous donations to the extent of Rs. 2,05,00,000/- merely on the ground that the AO could not get the confirmation from the above 9 parties and has made the addition u/s 115BBC(1). There is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined pattern of amount and the manner in which the amounts have been routed in the bank statement of these companies and the amount which was given as donation in favour of the assessee. Though the amounts have been received from various bank accounts into the account of these companies from where cheques have been issued in favour of the assessee. However, the entries show that they are typically managed by entry operators. Thus, AO has rightly taxed the donation u/s 115BBC. 6. Before us Ld. Counsel for the assessee submitted that, to fall within the mischief of section 115BBC for taxing the anonymous donation is that, the person receiving the voluntary contribution does not maintain a record of identify indicating the name and address of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x calculated on the income by way of any anonymous donation, at the rate of thirty per cent; and (ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (i). [The following clauses (i) and (ii) shall be substituted for the existing clauses (i) and (ii) of sub-section (1) of section 115BBC by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010:] (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 (ii) the amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tensibly in the present case the assessee has given the identity by giving the name and address of the corporate of the companies who have given the donations and not only that, their copy of the audited balance sheets, profit and loss account, income tax return, bank statement, etc., has been provided of all the 9 corporate entities and their return before the Registrar of the Companies. Hence the conditions which have been laid down in sub section 3 and onus which is cast upon the person receiving the donation has been fully discharged. The entire case of the AO is that the donation received by the assessee trust by these companies were in fact were operated by accommodation entry providers and they do not have much income and the bank st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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