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TMI Blog2024 (2) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... dha peeth. Therefore, the only task that was left for the AO, was to give the refund of the taxes paid. This is because the ITAT has held that there was no income chargeable to tax. We should also observe that it has not been even argued before the ITAT that Section 44AB of the Act was applicable or that the Form 10B was filed after the due date because we do not find any such submissions recorded in the order of ITAT. Notwithstanding this, the AO once again called upon Petitioner to furnish complete set of Form 10B and also to justify why the claim of exemption under Section 11 of the Act be allowed. Strangely, the AO, one Mr. Meet Kumar, who has also filed the affidavit-in-reply, has stressed upon the time limit specified under Section 44AB of the Act ignoring the fact that it was not even argued before the ITAT and it had already been accepted in the original assessment order dated 26th December 2019 that Petitioner was entitled to deductions/ exemptions under Section 11 of the Act. We find it rather unacceptable that the officer has tried to take shelter under a paragraph of the order of ITAT where the Tribunal has only narrated what was the order passed by the CIT(A). Though w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee admittedly is a charitable organization under Section 12A of the Income Tax Act, 1961 ( the Act ). Paragraph 2 of the original assessment order dated 26th December 2019 under Section 143(3) of the Act for Assessment Year ( AY ) 2017-2018 records, the assessee is registered as charitable organization under Section 12A of the Act and runs a temple and community hall at Bangur Nagar, Goregaon, Mumbai. The details filed by assessee has been perused and carefully deliberated upon. This assessment order proceeded to tax a sum of Rs. 2,88,96,000/- as unexplained money under Section 69A of the Act after giving exemption under Section 11 of the Act. 5. Petitioner s income consists of voluntary contributions from devotees and followers. According to Petitioner, these voluntary contributions are deemed income chargeable to tax under Section 12(1) of the Act and exempted subject to the provisions of Sections 11 to 13 of the Act. For AY 2017-2018, Petitioner filed its return of income on 24th February 2018 declaring its entire income exempt from tax under Section 11 of the Act. On the same day, Petitioner also filed Audit Report in Form 10B. The then AO picked up Petitioner s case for sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that out of this amount, a sum of Rs. 3,07,77,671/- being cash deposited by Petitioner, was assessable under Section 69A of the Act and, therefore, came in the purview of Section 115BBE of the Act. This is notwithstanding in the assessment order dated 26th December 2019 (first assessment order), the AO had accepted the expenses of Petitioner as bona fide expenses to the tune of Rs. 3,96,77,300/- and had even deducted the amount for arriving at the net income. 10. Aggrieved Petitioner filed an appeal before the Commissioner of Income Tax (Appeals) ( CIT(A) ). Petitioner raised various grounds including the ground that the finding of AO that Form 10B was filed only on 24th February 2019 was not correct because the form had, in fact, been filed on 24th February 2018. The CIT(A) disposed Petitioner s appeal by directing the AO as under : In any case, the filing of Form 10B is a matter of fact and can easily be verified by the AO. If Form No. 10B has been filed before the specified date referred to in Section 44AB, the claim of exemption under Section 11 of the Act shall not be disallowed. The AO is directed to verify the same and allow accordingly. The claim of the Appellant is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case, hence section 115BBE of the Act. Accordingly, Ground Nos. 1 2 raised by the assessee is allowed. 13. While coming to this conclusion, the ITAT has also correctly recorded that Section 69A of the Act was not applicable to the facts and circumstances of this case. So also, the provisions of Section 115BBC of the Act because Sub-section (1) of Section 115BBC will not apply to donations like that has been received by Petitioner in donation boxes from numerous devotees, who have offered the offerings on account of respect, esteem, regard, reverence and their prayer for their deity/siddha peeth. Paragraphs 8, 9 and 10 of the order of ITAT read as under : 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 section 115BBC(1) are applicable for the anonymous donations received by any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at their name be registered as a donor before the deity for whom they make the prayer in the belief that the deity is the ultimate giver of all the worth and virtues of their life. Now 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 assessee-trust as the same are meant to check the inflow of unaccounted/black money into the system with a modus operandi to make out as a part of the accounts of the institutions like university, medical institutions where the problem relating to the receipt of capitation fees, etc. is generally highlighted. Under such circumstances, there is no justification on the part of the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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