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TMI Blog2023 (5) TMI 1300X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied. Thus we are of the considered view that section 69A has no applicability in the present case, hence section 115BBE of the Act . Accordingly, Ground Nos. 1 2 raised by the assessee is allowed. Interest claimed on Corpus fund - We set aside the matter back to AO for verification with a direction that if interest so claimed by the assessee pertains to corpus fund, then the same has to be allowed as accretion to corpus fund, otherwise it will be deemed to be the income of the assessee subject to the benefits available in section 12A. Anonymous donations received - As reverting to the definition of anonymous donations under sub-section (3) of section 115BBC, it is found that it has been mentioned that anonymous donations means voluntary contributions where the person receiving such contributions does not maintain a record of the identity indicating the name and address of the person making such contribution and charitable trust as in the case of the assessee, it is generally not only difficult but also not possible to maintain such type of record. A perusal of the entire section 115BBC shows that the provisions of said section are not applicable to the institutions like that of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and papers as may be necessary." 1. Brief facts of the case are that assessee charitable trust is duly registered u/s. 12A of the Act. Filed its return of income on 24-02-2018 declaring total income of Rs Nil. The mandatory audit report in form no. 10B is filed on 24- 02-2019. Case of the assessee was selected for scrutiny assessee and assessed at Rs 2, 88, 96,000/-. Assessee runs a temple and community hall at Bangur Nagar, Goregaon Mumbai. 2. AO was in possession of information through the actionable intelligence monitoring system of ITD that assessee had made a cash deposit of Rs 6, 21, 86,235/- during the F.Y.2016-17 (including Rs 3, 18, 09,117/- during the demonetization period). Consequent to this a survey proceeding under the provisions of Sec. 133A of the Act was conducted on 21-03-2017. During survey proceedings, a sworn statement of Shri Raghavan Paniker, permanent life trusty of the assessee trust was recorded on oath. Relevant extracts of the statement are available on page no. 2 to 6 of the assessment order and we have gone through the same. It was observed that assessee trust has received old currency during the demonetization period amounting to Rs 2,88,96,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im is not, in the opinion of the[Assessing] Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year. Section - 115BBC, Income-tax Act, 1961 [Anonymous donations to be taxed in certain cases. 115BBC. (1) Where the total income of an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub-clause (iiiad) or subclause (vi) or any hospital or other institution 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-- [(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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any money, bullion, jewellery or other valuable article and such money, bullion, jewellery, or valuable article is not recorded in the books of account, if any, maintained by him for any source of income. In this case whatever may be the amount received by the assessee as donation in various forms, were duly entered in the books of accounts and tallied with bank statement also. Assessee's books were subject to audit and duly audited accounts were produced before the authorities for verification. Rather, amount tried to be covered u/s. 69A was pointed out by the department from assessee's own books of accounts and bank statements. Since otherwise also assessee was not found with any money, bullion, jewellery, or other valuable article conditions prescribed in section 69A can't be applied. We further relied on following judicial pronouncements of coordinate benches and various Hon'ble High Courts and Apex Court as under: 1). [2022] 142 taxmann.com 122 (Chennai - Trib.) DCIT v. M.C. Hospital "It is also noted that the opening cash balance of Rs. 57.11 lakhs are an accepted amount which has been subject to assessment under section 143(3) for assessment year 2016-17 and thus, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. In that case it was found, as in the present case that the assessee had applied more than 75% of the donations for charitable purposes as per its objects. The Delhi High Court further held that Section 68 of the Act has no application in such case where the assessee had disclosed donations as its income. It was also not disputed that all receipts, other than corpus donations, would be income in the hands of the assessee. If there is full disclosure of the donation for whatever purpose and that the registration under Section 12-A is continuing and valid, exemptions cannot be denied." 4). [2005] 146 TAXMAN 569 (DEL.) DIT (Exem.)v. Keshav Social & Charitable Foundation "To obtain the benefit of the exemption under section 11, an assessee is required to show that the donations were voluntary. In the instant case, the assessee had not only disclosed its donations, but had also submitted a list of donors. The fact that the complete list of donors was not filed or that the donors were not produced, did not necessarily lead to the inference that the assessee was trying to introduce unaccounted money by way of donation receipts. That was more particularly so in the facts of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therwise it will be deemed to be the income of the assessee subject to the benefits available in section 12A. In the result, this ground of assessee is allowed for statistical purposes. 8. The assessee is running a temple of Lord Ayyappa and a community hall and there was no change in the aims and objects of the assessee in comparison to the earlier year. The Assessing Officer while framing the original assessment categorically stated that the activities of the assessee are charitable within the meaning of section 2(15) and there was no change in the aims and objects of the assessee as compared to the earlier years. The provisions of section115BBC (1) are applicable for the anonymous donations received by any university or other educational institution or any hospital or any trust or institution referred to in sub-clauses (iiiad) or (vi) or (iiiae) or (via) or (iv) or (v) of clause (23C) of section 10. However, sub-section (2) of section 115BBC provides that the said provisions are not applicable to any anonymous donation received by any trust or institution created or established wholly for religious purposes. 9. In the instant case, the assessee is established for religious an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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